Pricing and Industry Structure when Demand Elasticity Changes
| Autor: | Guanming Shi, Kyle W. Stiegert, Jean-Paul Chavas |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Price elasticity of demand
Organizational Behavior and Human Resource Management Economics and Econometrics Strategy and Management 05 social sciences Monetary economics engineering.material Market concentration Nitrogen fertilizer Management of Technology and Innovation 0502 economics and business engineering Economics Fertilizer 050207 economics Elasticity (economics) Imperfect competition health care economics and organizations 050205 econometrics |
| Zdroj: | Review of Industrial Organization. 57:891-907 |
| ISSN: | 1573-7160 0889-938X |
| DOI: | 10.1007/s11151-019-09745-y |
| Popis: | This paper examines the economics of pricing under imperfect competition. It studies how industry concentration interacts with the elasticity of demand to affect pricing. When the demand elasticity decreases with increased market concentration, it can have significant effects on pricing. This issue is investigated empirically in an analysis of the determinants of nitrogen fertilizer prices in the US. The U.S. nitrogen fertilizer industry is an interesting case study for two reasons: First, it has exhibited increasing concentration over the last few decades. Second, the elasticity of U.S. demand for nitrogen fertilizer has decreased over that time period. Our analysis documents how a more inelastic demand for fertilizer—in addition to increased market concentration—has contributed to higher fertilizer prices. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|
| Nepřihlášeným uživatelům se plný text nezobrazuje | K zobrazení výsledku je třeba se přihlásit. |