|Generate QR code
Open Access
Subscription Access
Markets of Joint Products: the oretical Model and Policy Implications
https://doi.org/10.32609/0042-8736-2015-2-104-122
Abstract
The article considers the phenomenon of price behavior on markets of joint products. It is shown that conclusions about the nature of economic entities’ behavior on this kind of markets could be inaccurate if their characteristics such as joint costs and correlation of demand conditions on markets mentioned are not taken into account. For this purpose a theoretical model, built according to basic microeconomic principles, is applied. It provides an opportunity to reveal - without further new institutional analysis - that the reason for price deviation from a competitive level does not always lie in actions restricting competition.
About the Authors
A. Shastitko
Lomonosov Moscow State University (Moscow, Russia); Russian Presidential Academy of National Economy and Public Administration; Russian Presidential Academy of National Economy and Public Administration (Moscow, Russia)
Russian Federation
Russian Federation
A. Shastitko
Lomonosov Moscow State University (Moscow, Russia); The New School for Social Research (New York, US)
United States
United States
References
1. Artemiev I. Yu., Tsarikovsky A. Yu., Kinev A. Yu. (2013). From “Matches” to “Salt”. Fighting Cartels. Best Practices of 2008—2013. Moscow. (In Russian).
2. Coase R. (1993). The Firm, the Market and the Law. Moscow: Delo. (In Russian).
3. Blair R. D., Haynes J. S. (2012). A Note on the Consequences of Monopsony When Goods Are Jointly Produced in Fixed Proportions. Review of Industrial Organization, Vol. 40, No. 1, pp. 75-83.
4. Colberg M. R. (1941). Monopoly Prices under Joint Costs: Fixed Proportions. Journal of Political Economy, Vol. 49, No. 1, pp. 103-110.
5. Deutsch A. (1965). Joint Products and Basing Point Pricing: The Case of Caustic Soda and Liquid Chlorine. Canadian Journal of Economics and Political Science, Vol. 31, No. 3, pp. 397-401.
6. Graham J. W., Green C. A. (1984). Estimating the Parameters of a Household Production Function with Joint Products. Review of Economics and Statistics, Vol. 66, No. 2, pp. 277-282.
7. Houck J. P. (1964). Price Elasticities and Joint Products. Journal of Farm Economics, Vol. 46, No. 3, рр. 652-656.
8. Jensen D. L. (1974). The Role of Cost in Pricing Joint Products: A Case of Production in Fixed Proportions. Accounting Review, Vol. 49, No. 3, pp. 465-476.
9. Kreps T. J. (1930). Joint Costs in the Chemical Industry. Quarterly Journal of Economics, Vol. 44, No. 3, pp. 416-461.
10. Manes P., Smith V. L. (1965). Economic Joint Cost Theory and Accounting Practice. Accounting Review, Vol. 40, No. 1, pp. 31-35.
11. Piggott N. E., Wohlgenant M. K. (2002). Price Elasticities, Joint Products, and International Trade. Australian Journal of Agricultural and Resource Economics, Vol. 46, No. 4, pp. 487-500.
12. Schmalensee R. (2012). “On a Level with Dentist?” Reflections on the Evolution of Industrial Organization. Review of Industrial Organization, Vol. 41, No. 3, pp. 157-179.
13. Walters A. A. (1960). The Allocation of Joint Costs with Demands as Probability Distributions. American Economic Review, Vol. 50, No. 3, pp. 419-432.
Review
For citations:
Shastitko A., Shastitko A. Markets of Joint Products: the oretical Model and Policy Implications. Voprosy Ekonomiki. 2015;(2):104-122. (In Russ.) https://doi.org/10.32609/0042-8736-2015-2-104-122
Views:
852
Email this article 
