The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson,[1] describes the relation between price, marginal revenue, and price elasticity of demand.
,
where
- is the marginal revenue,
- is the particular good,
- is the good's price,
- is the price elasticity of demand.
Extension and generalization
In 1967, Ernst Lykke Jensen published two extensions, one deterministic, the other probabilistic, of Amoroso–Robinson's formula.[2]
See also
References
Citations
- ^ Robinson 1932, p. 544–554.
- ^ Jensen 1967, p. 712-722.
Bibliography
- Robinson, Joan (1932). "Imperfect Competition and Falling Supply Price". The Economic Journal. 42 (168): 544–554. doi:10.2307/2223779. JSTOR 2223779.
- Jensen, Ernst Lykke (1967-05-01). "Extensions of Amoroso-Robinson's Formula". Management Science. 13 (9): 712–722. doi:10.1287/mnsc.13.9.712.
Further reading
- Nicholson, Walter (2005). Microeconomic Theory: Basic Principles and Extensions (Ninth ed.). Thomson/South-Western. pp. 385–414. ISBN 0-324-27086-0.