Abstract
Average cost pricing and its associated variations refer to the practice of firms’ price decisions. With the exception of certain markets for primary commodities and financial transactions where either an auctioneer or jobbers make prices, the vast majority of goods and services are traded in markets where firms must set prices. Once set, firms’ sales are limited by the size of the market and the competition of rivals.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Andrews, P.W.S. 1949. Manufacturing business. London: Macmillan.
Chamberlin, E.H. 1933. The theory of monopolistic competition. Cambridge, MA: Harvard University Press.
Coutts, K.J., W.A.H. Godley, and W.D. Nordhaus. 1978. Industrial pricing in the United Kingdom. Cambridge: Cambridge University Press.
Eckstein, O., and G. Fromm. 1968. The price equation. American Economic Review 58: 1159–1183.
Fromm, G., and P. Taubman. 1968. Policy simulations with an econometric model. Washington, DC: Brookings.
Godley, W.A.H. 1959. Costs, prices and demand in the short run. In Macroeconomic themes, ed. M.J.C. Surrey. Oxford: Oxford University Press. 1976.
Godley, W.A.H., and W.D. Nordhaus. 1972. Pricing in the trade cycle. Economic Journal 82: 853–882.
Hall, R.E., and C. Hitch. 1939. Price theory and business behaviour. Oxford Economic Papers 2: 12–45.
Johnston, J. 1960. Statistical cost analysis. New York: McGraw-Hill.
Kalecki, M. 1943. Studies in economic dynamics. London: Allen & Unwin.
Kaplan, A., J. Dirlam, and R. Lanzillotti. 1958. Pricing in big business. Washington, DC: Brookings.
Laidler, D., and M. Parkin. 1975. Inflation: A survey. Economic Journal 85: 741–809.
Machlup, F. 1946. Marginal analysis and empirical research. American Economic Review 36: 519–554.
McCallum, B.T. 1970. The effect of demand on prices in British manufacturing: Another view. Review of Economic Studies 37(1): 147–156.
Means, G.C. 1935. Price inflexibility and the requirements of a stabilizing monetary policy. Journal of the American Statistical Association 30: 401–413.
Neild, R.R. 1963. Pricing and employment in the trade cycle. Cambridge: Cambridge University Press.
Nordhaus, W.D. 1971. Recent developments in price dynamics. In The econometrics of price determination, ed. O. Eckstein. Washington, DC: Federal Reserve.
Okun, A. 1981. Prices and quantities: A macroeconomic analysis. Washington, DC: Brookings.
Robinson, J. 1933. The economics of imperfect competition. London: Macmillan.
Rushdy, F., and P.J. Lund. 1967. The effect of demand on prices in British manufacturing industry. Review of Economic Studies 34: 361–373.
Schultze, C.L. and J.L. Tryon. 1965. Prices and wages. In The Brookings quarterly econometric model of the United States. Chicago: Rand McNally.
Smyth, R. 1967. A price-minus theory of cost. Scottish Journal of Political Economy 110–117.
Sweezy, P.M. 1939. Demand under conditions of oligopoly. Journal of Political Economy 47: 568–573.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Coutts, K.J. (2018). Average Cost Pricing. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_538
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_538
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences