We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Price Elasticity of Demand as an Element of Market Structure.
- Authors
Johnson Jr., A. C.; Helmberger, Peter
- Abstract
Is price elasticity of demand an important element of market structure. Economist Jesse Markham says it is and cites the conduct of producers of rayon and copper in support of his contention. Economist Richard Caves agrees that elasticity is an element of structure but apparently not a very important one. He cites no empirical evidence for his views but gives a simple theoretical argument which will be expanded upon momentarily. This paper describes theoretical grounds that elasticity of demand may well be an extremely important dimension of market structure where by structure mean the set of environmental elements that influence market conduct and performance. There is little reason to suppose that elasticity of demand is even roughly the same from one industry to the next. Indeed, the evidence suggests considerable variation. If demand elasticity is an important dimension of structure, one might first look for performance consequences in industries characterized by extreme elasticity or inelasticity.
- Subjects
ELASTICITY (Economics); ECONOMIC demand; INDUSTRIAL organization (Economic theory); MARKHAM, Jesse; PRICES; CAVES, Richard; MARKETS; RAYON industry; ECONOMICS
- Publication
American Economic Review, 1967, Vol 57, Issue 5, p1218
- ISSN
0002-8282
- Publication type
Article