A note on Ramsey pricing and the structure of preferences

B-Tier
Journal: Journal of Mathematical Economics
Year: 2018
Volume: 76
Issue: C
Pages: 45-51

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We represent quasi-linear preferences by the dual measure of consumer surplus, and investigate demand and the associated optimal pricing. In particular, we discuss substitutability with respect to the outside commodity, deriving a Slutsky-like decomposition of the price effects. We use our results to show that commodities with larger outside substitutability have smaller optimal Lerner indexes, and that Ramsey prices are always proportional to marginal costs only if preferences are fully homothetic.

Technical Details

RePEc Handle
repec:eee:mateco:v:76:y:2018:i:c:p:45-51
Journal Field
Theory
Author Count
1
Added to Database
2026-01-24