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Pricing with the Help of the Choke Price

R. De Bondt

Review of Business and Economic Literature, 2011, vol. 56, issue 1, 2-10

Abstract: This paper draws the attention to some simple formulas to calculate equilibrium prices in case a linear demand is reasonable and information about the choke price is available. It can serve to convince analysts that even with very limited data and no algebra, useful back of the envelope calculations are available. In addition it helps to clarify tendencies of price elasticity with changing demand.

Date: 2011
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Handle: RePEc:sen:rebelj:v:56:i:1:y:2011:p:2-10