Amoroso–Robinson relation

The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson,{{sfn|Robinson|1932|p=544–554}} describes the relation between price, marginal revenue, and price elasticity of demand.

$\frac{\partial R}{\partial x}=p\left( 1+\frac{1}{\epsilon _{x,p}}\right)$ ,

where

$\scriptstyle \frac{\partial R}{\partial x}$ is the marginal revenue,
$x$ is the particular good,
$p$ is the good's price,
$\epsilon_{x,p}<0$ 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.{{sfn|Jensen|1967|p=712-722}}

References

= Citations =

= Bibliography =

{{Cite journal |last=Robinson |first=Joan |title=Imperfect Competition and Falling Supply Price |journal=The Economic Journal |volume=42 |issue=168 |year=1932 |pages=544–554 |jstor=2223779 |doi=10.2307/2223779}}
{{Cite journal|last=Jensen|first=Ernst Lykke|date=1967-05-01|title=Extensions of Amoroso-Robinson's Formula|url=http://pubsonline.informs.org/doi/abs/10.1287/mnsc.13.9.712|journal=Management Science|language=en|volume=13|issue=9|pages=712–722|doi=10.1287/mnsc.13.9.712}}

= Further reading =

{{cite book |last=Nicholson |first=Walter |title=Microeconomic Theory: Basic Principles and Extensions |publisher=Thomson/South-Western |edition=Ninth |year=2005 |pages=385–414 |isbn=0-324-27086-0 }}

Category:Revenue