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Elasticidad precio de la demanda y su relevancia en materia de bienestar en un mercado monopolista
[Price elasticity of demand and its relevance in terms of welfare in a monopolistic market]

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  • Herrera Saavedra, Juan Pablo

Abstract

Este documento analiza a la luz de una situación monopólica, el efecto sobre el bienestar de los consumidores derivado de cambios en la magnitud de la elasticidad precio de la demanda. En el artículo se asume una función de demanda con elasticidad precio de la demanda constante y rendimientos constantes a escala asociados a la firma productora del bien o servicio. Se encuentra que entre más elástico sea el mercado, mayor será la porción de excedente del consumidor que es tomado por la firma, en términos relativos al excedente del consumidor en una situación perfectamente competitiva. This document analyzes since a monopolistic situation the effect in terms of consumer welfare derived of changes in the price elasticity of demand. The paper assumes a constant price elasticity of demand function and constant return of scale associated with the seller of the service of good firm. It is found that a greater level of elasticity, greater the level of profits of the monopolistic firm in relative terms to the consumer surplus in perfect competition.

Suggested Citation

  • Herrera Saavedra, Juan Pablo, 2013. "Elasticidad precio de la demanda y su relevancia en materia de bienestar en un mercado monopolista [Price elasticity of demand and its relevance in terms of welfare in a monopolistic market]," MPRA Paper 46699, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:46699
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    References listed on IDEAS

    as
    1. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, December.
    2. Oz Shy, 1996. "Industrial Organization: Theory and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262691795, December.
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    More about this item

    Keywords

    Monopoly; price elasticity of demand; computational simulation; welfare; consumer surplus.;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D69 - Microeconomics - - Welfare Economics - - - Other

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