Amoroso–Robinson relation

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.

Extension and generalization

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

gollark: https://queue.acm.org/detail.cfm?id=3212479
gollark: AMD and Intel CPUs have for some time been JITing x86 into internal RISC microcode.
gollark: Wrong. The ISA is old, but the microarchitectures of high-performant x86 CPUs are absolutely not ancient. They internally do a ton of optimization tricks to pretend to execute code in order with flat undifferentiated memory as fast as possible, even though the CPU is executing things out of order and aggressively caching and prefetching.
gollark: However, you can just not use it and will probably save a lot of time and segfaults.
gollark: Performant because it contorted the design of all modern CPUs to fit its model, useful because all the low-level APIs use it.

See also

References

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

Bibliography
  • Robinson, Joan (1932). "Imperfect Competition and Falling Supply Price". The Economic Journal. 42 (168): 544–554. doi:10.2307/2223779. JSTOR 2223779.CS1 maint: ref=harv (link)
  • 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.CS1 maint: ref=harv (link)

Further reading
  • Nicholson, Walter (2005). Microeconomic Theory: Basic Principles and Extensions (Ninth ed.). Thomson/South-Western. pp. 385–414. ISBN 0-324-27086-0.CS1 maint: ref=harv (link)


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