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Comparative statics of monopoly pricing

Summary. When consumers' willingness-to-pay increases by a uniform amount, the change in the resulting monopoly price is generally indeterminate. Our analysis identifies sufficient conditions on the underlying demand curve which predict both the sign and the magnitude of the resulting price change.

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Received: 22 April 1998; revised version: 29 March 1999

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Baldenius, T., Reichelstein, S. Comparative statics of monopoly pricing. Econ Theory 16, 465–469 (2000).

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  • Keywords and Phrases:Monopoly pricing, Comparative statics, Log-concavity.
  • JEL Classification Numbers:D42, L12.