Quasilinear Utility and Two Market Monopoly

Stephen K. Layson

International Business Research, 2017, vol. 10, issue 3, 164-168

Abstract: The use of quasilinear utility functions in economic analyses is widespread. This paper presents an overdue clarification on the implications of quasilinear utility for two market monopoly. The paper begins by deriving the demands facing a two market monopoly from a representative consumer with quasilinear utility. Expressions are derived for the profit margins expressed solely in terms of the own and cross-price elasticities of demand. The paper also analyzes the implications of quasilinear utility for other issues in two market monopoly: pricing below marginal cost in a market, third-degree price discrimination when the monopoly products are substitutes and pricing in the inelastic region of demands.

Keywords: quasilinear utility; two product monopoly; third-degree price discrimination (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ccsenet.org/journal/index.php/ibr/article/view/66401/35963 (application/pdf)
http://www.ccsenet.org/journal/index.php/ibr/article/view/66401 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ibrjnl:v:10:y:2017:i:3:p:164-168

Access Statistics for this article

More articles in International Business Research from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().