Cellophane paradox
id:
cellophane-paradox-284-11703841
title:
Cellophane paradox
text:
The Cellophane paradox describes a type of incorrect reasoning used in market regulation methods. The paradox arises when a firm sells a product with few substitutes, which in turn allows the firm to increase the price of that product. The original reason was that as the price increases, the product will reach a point where it begins to attract more and more substitutes. In technical economic terms, such a product has very low cross-price elasticity of demand. The situation is linked to a United
brand slug:
wiki
category slug:
encyclopedia
description:
Type of incorrect reasoning used in market regulation methods
original url:
https://en.wikipedia.org/wiki/Cellophane_paradox
date created:
date modified:
2023-09-04T15:17:44Z
main entity:
{"identifier":"Q5058328","url":"https://www.wikidata.org/entity/Q5058328"}
image:
fields total:
13
integrity:
14