The best prices of two mutual complements in the fuzzy sense (Q1973354)

This paper derives the revenue maximizing prices in the fuzzy sense in a model with two mutually complementary merchandises (typically called differentiated goods in the economics literature). Two cases are considered. In the first case, both demand functions are linear. In the second case, one of the demand functions is linear while the other is quadratic. The paper shows that only in the monopoly case, is it possible to obtain crisp demand functions in which the same prices lead to the same demands. In a perfectly competitive market, the same prices may not lead to the same quantities of demand, thus the demand functions are fuzzy.