Mercati di clientela con avversione al rischio

Maria Cristina Colorito ()

No 2, Working Papers from Doctoral School of Economics, Sapienza University of Rome

Abstract: In the traditional models of customer markets it can be identified a price rigidity due to the existence of a discontinuity in the firm’s marginal revenue curve. This paper presents a microeconomic model that combines the hypothesis of a risk-averse pricesetting firm with the customer markets analysis. We show that, when a shock to marginal cost moves marginal cost curve outside the discontinuity range of marginal revenue curve, the adjustment of price under risk aversion tends to be more sluggish than under risk neutrality and a sufficiently great risk aversion implies price inertia.

JEL-codes: D21 D81 D82 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-upt
Date: 2009-02

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