- 1 - Increasing Marginal Revenue and Demand Elasticity
نویسنده
چکیده
If social “harm” is an inverse-U function against the degree of control of illicit drug markets, and if revenue can proxy “harm,” what demand functions result in increasing marginal revenue?
منابع مشابه
Relationships Among Three Assumptions in Revenue Management
This note discusses the relationships among three assumptions that appear frequently in the pricing/revenue management literature. These assumptions are mostly needed for analytical tractability, and they have the common property of ensuring a well-behaved “revenue function.” The three assumptions are decreasing marginal revenue with respect to demand, decreasing marginal revenue with respect t...
متن کاملOn Assumptions Ensuring a Strictly Unimodal Revenue Function
This note discusses the relationships among three assumptions which appear frequently in the pricing literature. Each of these assumptions ensures that a “revenue function” is strictly unimodal over the region of interest. The three assumptions are decreasing marginal revenue with respect to demand, decreasing marginal revenue with respect to price and decreasing price elasticity of demand. We ...
متن کاملThe price sensitivity of cigarette consumption in Bangladesh: evidence from the International Tobacco Control (ITC) Bangladesh Wave 1 (2009) and Wave 2 (2010) Surveys.
BACKGROUND In Bangladesh, the average excise tax on cigarettes accounted for just 38% of the average retail price of cigarettes in 2009, and 45% in 2010. Both these rates are well below the WHO recommended share of 70% of the retail price at a minimum. There is thus ample room for raising taxes on cigarettes in Bangladesh. The objective of the present work was therefore to estimate the price el...
متن کاملTechnology, Demand, and the Size Distribution of Firms∗
We present exact conditions relating the distribution of firm productivity to the distributions of sales, output, and markups; and we use the Kullback-Leibler divergence to quantify the information loss when a predicted distribution fails to match the actual one. In particular, we show that, for a large family of distributions (including Pareto, lognormal, and Fréchet), the distributions of pro...
متن کاملON PRICING WTI 1 I LUMPY INVESTMENT : * Two Problems of Boiteux
"Lumpy" increments to capital stock are warranted by increasing returns to plant construction. Following Boiteux, we attempt to reconcile the resulting double mismatch between capacity and demand, and between revenue and cost. Ignoring the budget problem at first, we derive conditions for optimal prices and for the optimal size and frequency of investment projects. Price is set at marginal oper...
متن کامل