On Morishima's Postulate and Mark-up Principle
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The view about a certain mixed structure with monopoly and competition is the typical subject. Morishima found that the patterns of deciding price are dependent on the main types of price mechanism. I'll test Morishima's postulate through use of the recent data. We can consider the relative difference between the manufacturing sector and the agricultural sector in deciding the market price. Especially I am interested in the institutions and features of deciding and changing price in using the mark-up principle under the monopolistic pressures namely, in the circumstances we call rivalry. Concretely those are realized under the fixed, flexible and mixed price economies. The mark-up principle is closely related to the ratio between two sectors in thefixed price economy. Schumpeter told us that the clever firm is able to use his wisdom thoughtfully and effectively by creating, processing his own pricing method and innovational knowledge in R&D.
- Okayama economics review
Okayama economics review 36(1), 1-11, 2004-06