Shift or Pivot? Market Entry and Exit With Linear Supply and Demand Curves.
Textbooks commonly misrepresent the effects of market entry and exit by consumers and producers as parallel shifts of linear market demand and supply curves. Such portrayals are inconsistent with the underlying premise that a market-level curve is the horizontal summation of individual-level curves....
| Publicado en: | American Economist Vol. 69; no. 1; pp. 168 - 187 |
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| Formato: | Artículo |
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Sage Publications Inc.
Mar2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=hlh&AN=175367497&site=ehost-live header: @attributes: shortDbName: hlh uiTerm: 175367497 longDbName: Humanities International Complete uiTag: AN controlInfo: bkinfo: jinfo: jid: 05694345 AEC jtl: American Economist issn: 05694345 maglogo: N pubinfo: dt: Mar2024 vid: 69 iid: 1 pid: 344 pub: Sage Publications Inc. artinfo: ui: 175367497 10.1177/05694345231209228 ppf: 168 ppct: 19 formats: tig: atl: Shift or Pivot? Market Entry and Exit With Linear Supply and Demand Curves. aug: au: Eisenhauer, Joseph G. affil: College of Business Administration, 2966 University of Detroit Mercy, Detroit, MI, USA su: Market exit Demand function Market entry Supply & demand Tax incidence sug: subj: Market exit Demand function Market entry Supply & demand Tax incidence keyword: consumer surplus elasticity long run equilibrium market entry pivot producer surplus tax incidence ab: Textbooks commonly misrepresent the effects of market entry and exit by consumers and producers as parallel shifts of linear market demand and supply curves. Such portrayals are inconsistent with the underlying premise that a market-level curve is the horizontal summation of individual-level curves. A more accurate depiction is a pivot: entry flattens (and exit steepens) a market-level curve. Reconceiving the effects of entry and exit as pivoting, rather than shifting, the curve has important implications for own-price elasticities, consumer surplus, producer surplus, the incidence of taxation, and the competitive market adjustment to a long run equilibrium. JEL codes: A22, B40, D01 pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: Y dt: @attributes: year: 2024 holdings: @attributes: islocal: N |
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