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The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson[1], describes the relation between price, marginal revenue, and elasticity of demand.

,

where

  • is the marginal revenue,
  • is the particular good,
  • is the good's price,
  • is the price elasticity of demand.

Contents

Extension and generalizationEdit

In 1967, Ernst Lykke Jensen published two extensions, one deterministic, the other probabilistic, of Amoroso–Robinson's formula.[2]

See alsoEdit

ReferencesEdit

CitationsEdit

  1. ^ Robinson 1932, p. 544–554.
  2. ^ Jensen 1967, p. 712-722.

BibliographyEdit

  • 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 readingEdit

  • Nicholson, Walter (2005). Microeconomic Theory: Basic Principles and Extensions (Ninth ed.). Thomson/South-Western. pp. 385–414. ISBN 0-324-27086-0.