Article ID: | iaor20061720 |
Country: | Netherlands |
Volume: | 34 |
Issue: | 1 |
Start Page Number: | 46 |
End Page Number: | 48 |
Publication Date: | Jan 2006 |
Journal: | Operations Research Letters |
Authors: | Paul Anand |
Keywords: | demand |
We derive new sufficient conditions for the manufacturer's profit function to be unimodal. We show that if the demand density function is unimodal and right-skewed, then the profit function is quasi-concave over the support of the distribution. We also report some counterintuitive properties of the profit function.