Econometrica: Jul 1983, Volume 51, Issue 4

Price Responsiveness and Market Conditions

https://doi.org/0012-9682(198307)51:4<971:PRAMC>2.0.CO;2-J
p. 971-980

Michael Braulke

This paper develops a systematic relationship between the price responsiveness of an optimizing agent and the conditions prevailing in its relevant markets. The result rests on a formal comparative statics phenomenon that has a striking similarity to the classical strong LeChatelier principle as well as to the interesting new comparative statics phenomenon established by Edlefsen.

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