Comparative Statics of Monopoly Pricing
Posted: 14 Sep 2000
When consumers' willingness-to-pay increases by a uniform amount, the change in the resulting monopoly price is generally indeterminate. Our analysis identifies sufficient conditions on the underlying demand curve which predict both the sign and the magnitude of the resulting price change.
Keywords: monopoly pricing, comparative statics, log-concavity
JEL Classification: D42, L12
Suggested Citation: Suggested Citation