Customer Markets and Price Sensitivity
Bibliographic Data
| ID | 9724384 |
|---|---|
| Authors | Kiyohiko G Nishimura (corresponding author) |
| Year | 1989 |
| Volume | 56 |
| Issue | 222 |
| Pages | 187 |
| Publication date | 1989-05-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Economica (JOURNAL) |
| Journal identifiers | ISSN: 0013-0427 • E-ISSN: 1468-0335 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/2554038 |
| OpenAlex | W2059914760 |
| Language | EN |
| References cited | 1 |
This paper investigates the behavior of prices in customer markets of the Phelps-Winter type under uncertainty. It is shown that the responsiveness of prices to short-run demand and cost changes depends crucially on whether the marginal customer is price risk averse or price risk loving. If he is price risk averse (loving), then the customer market price is less (more) flexible than the monopoly price. Competition makes the customer market price more rigid (flexible) if the marginal customer is price risk averse (loving). The scope of rigid customer market prices is wide if near-rational behavior of customers and the adjustment cost in the consumption process are taken into consideration. Copyright 1989 by The London School of Economics and Political Science
Competition (biology) · Economics · Limit price · Marginal cost · Market price · Microeconomics · Mid price · Monetary economics · Monopoly · Price level · Price mechanism · Scope (computer science) · Consumer Market Behavior and Pricing · Economic theories and models · Game Theory and Applications
| Highly cited | No |
|---|