Pricing and production in consumer markets where sales depend on production

Ante Farm

Economics Letters, 2017, vol. 154, issue C, 17-19

Abstract: This paper deals with consumer markets where sales depend on production. Assuming that a firm’s sale is proportional to its production, it shows that a price leader will set a price which maximizes its industry’s revenues in markets with many small firms, independent of their cost functions.

Keywords: Pricing; Consumer markets; Price leadership; Proportional rationing (search for similar items in EconPapers)
JEL-codes: D43 L13 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:154:y:2017:i:c:p:17-19

DOI: 10.1016/j.econlet.2017.02.021

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