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Price theory is concerned with explaining economic activity in terms of the creation and transfer of value, which includes the trade of goods and services between difierent economic agents. A puzzling question addressed by price theory is, for example: why is water so cheap and diamonds
22 lis 2010 · PDF | We study the properties of a profit-maximizing monopolist's optimal price distribution when selling to a loss-averse consumer, where (following... | Find, read and cite all the research...
Economics is the social science that studies the production and distribution of goods and services in society. Then, what de–nes the branch of economics named macroeconomics? There are two de–ning characteristics. First, macroeconomics is the systematic study of the economic interactions in society as a whole. This
1 lis 2023 · In this paper, we (1) offer a working definition of dynamic pricing, (2) detail four key dimensions that underlie dynamic pricing, and (3) propose areas of interest to managers and scholars...
Most of the time, when economists speak of price, they are referring to a market-clearing price—that is, the price at which the amount of a good or service supplied by all sellers in a market is equal to the amount demanded by all buyers.
The price elasticity of demand is the percentage change in the quantity demanded of a good or service divided by the percentage change in the price. The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price.
A classic example of the price theoretic approach, which I plan to exposit formally in the introduction, is Dixit and Sandmo (1977)'s characterization of optimal linear income taxes in terms of two prices: the elasticity of taxable income with respect to the tax rate and an endogenous measure of post-tax-and-transfer income inequality.
