Pricing in Theory and Practice

Abstract

If you ask a student of economics what price is, he will answer that it is the factor which equates supply with demand. He is likely to add that, in a competitive market, price will tend to settle at a level at which no excess profits are made by the producers and the distributors, while a monopoly will fix prices so that its profits should be at a maximum. It is generally agreed, I think, that whether or not these statements contain an element of truth, they are of no use whatever to the businessman.

Citation

Gabor, A. (1979), "Pricing in Theory and Practice", Management Decision, Vol. 17 No. 8, pp. 635-648. https://doi.org/10.1108/eb001216