Pricing with the Help of the Choke Price
16 Pages Posted: 8 Dec 2010 Last revised: 16 Jan 2011
Date Written: January 12, 2011
Abstract
This paper draws the attention to some simple formulas to calculate equilibrium prices in case a linear demand is reasonable and information about the choke price is available. It can serve to convince analysts that even with very limited data and no algebra, powerful back of the envelope calculations are available. In addition it helps to clarify tendencies of price elasticity with changing demand.
Keywords: Pricing, Choke price
JEL Classification: D42
Suggested Citation: Suggested Citation
De Bondt, Raymond, Pricing with the Help of the Choke Price (January 12, 2011). Available at SSRN: https://ssrn.com/abstract=1721505 or http://dx.doi.org/10.2139/ssrn.1721505
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