Article ID Journal Published Year Pages File Type
958077 Journal of Economics and Business 2011 16 Pages PDF
Abstract
► This paper provides insights on how firms decide the size of the products. ► Size depends on the characteristics of supply and demand and on pricing (linear v non linear). ► Under non-linear pricing, the large size is chosen if the cost savings are important. ► Under linear pricing, if production costs are high only the small size is supplied. ► Non-linear pricing has mostly a positive effect due to an output/size expansion effect.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Strategy and Management
Authors
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