Econometrica: Apr 1950, Volume 18, Issue 2
The Analysis of Output Under Discrimination
Edgar O. EdwardsAdjusted 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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