Free Poisson distribution

The Amoroso–Robinson relation, named after economists Luigi Amoroso and Joan Robinson, describes the relation between price, marginal revenue, and elasticity of demand.

${\frac {\partial R}{\partial x}}=p\left(1+{\frac {1}{\epsilon _{x,p}}}\right)$,

where

• $\scriptstyle {\frac {\partial R}{\partial x}}$ is the marginal revenue,
• $x$ is the particular good,
• $p$ is the good's price,
• $\epsilon _{x,p}<0$ is the price elasticity of demand.

See also

• Lerner index

References

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