by Justin P Johnson and David P Myatt.
Download the Paper in PDF Format.
American Economic Review, 96(3), pp 756-784, June 2006.
Abstract:
We propose a framework for analyzing transformations of demand. Such transformations frequently stem from changes in the dispersion of consumers’ valuations, which lead to rotations of the demand curve. In many settings, profits are a U-shaped function of dispersion. [...]
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