Disequilibrium pricing rules under imperfect competition: a critical review
DOI:
https://doi.org/10.24275/uam/azc/dcsh/ae/2022v37n96/SeoaneKeywords:
pricing, disequilibrium, imperfect competitionAbstract
In economic theory, prices are a fundamental variable. One difficulty that exists in modeling disequilibrium positions has to do with price formation during these states, since only pricing rules that do not presuppose equilibrium of the modeled economy can be used. We review different rules proposed in the framework of imperfect competition to calculate disequilibrium prices in general interdependence models. The neoclassical markup is highlighted, and it is shown that every acceptable imperfect competition pricing rule is a particular version of the neoclassical markup, so it is concluded that the neoclassical markup is the only acceptable price formation rule in this analytical framework.
JEL Classification : B16; D43; D46; D50.
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