Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Apr, 1950, Volume 18, Issue 2

The Analysis of Output Under Discrimination

https://doi.org/0012-9682(195004)18:2<163:TAOOUD>2.0.CO;2-T
p. 163-172

Edgar O. Edwards

Adjusted concavity of demand curves as a criterion for comparing a firm's output under discriminatory and simple monopoly pricing is examined. An alternative criterion, the "slope ratio," is developed and its relation to the problem of output change under discriminatory pricing is explained. The relationship of the two criteria is set forth and a graphical presentation of both is given for comparative purposes. Finally, a simple illustrative problem is attacked using the two alternative criteria.


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