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Revisiting the role of elasticity in multiproduct monopoly pricing

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  • Barthel, Anne-Christine

Abstract

This paper provides ordinal conditions on elasticities and Lerner indices which guarantee that a monopolist charges a higher price in one market relative to another. These improve upon shortcomings of traditional methods, which rely on the point-wise comparability of elasticities.

Suggested Citation

  • Barthel, Anne-Christine, 2018. "Revisiting the role of elasticity in multiproduct monopoly pricing," Economics Letters, Elsevier, vol. 167(C), pages 120-123.
    • Handle: RePEc:eee:ecolet:v:167:y:2018:i:c:p:120-123
    DOI: 10.1016/j.econlet.2018.03.007
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    References listed on IDEAS

    as
    1. Barthel, Anne-Christine & Hoffmann, Eric, 2017. "Comparing optimal choices with multi-dimensional action spaces," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 45-50.
    2. Nirvikar Singh & Xavier Vives, 1984. "Price and Quantity Competition in a Differentiated Duopoly," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 546-554, Winter.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Elasticity; Lerner index; Monotonicity; Multiproduct monopoly;
    All these keywords.

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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