Non?linear revenue evaluation
نویسندگان
چکیده
In this article, we investigate different market structures where decision makers are incentivized by both profit and revenue. Our innovation is that consider managers evaluate revenue in a non-linear way, exhibiting diminishing marginal utility. This implies incremental changes revenue—for example, due to demand shocks—generate production choices depend on the existing base of firm. We show intuitively appealing extension reverses some conventional results: may increase output presence negative shocks, which depends concavity their utility function with respect
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ژورنال
عنوان ژورنال: Scottish Journal of Political Economy
سال: 2021
ISSN: ['0036-9292', '1467-9485']
DOI: https://doi.org/10.1111/sjpe.12303