Schlüsselmodell

The Schlüsselmodell, also known as the key model, is a theoretical framework used in economics and business to analyze the behavior of firms in an oligopolistic market. It was developed by Edward Chamberlin and Joan Robinson in the 1930s. The model is named after the "key" that a firm uses to determine its pricing and output decisions.

In the Schlüsselmodell, firms are assumed to have some degree of market power, allowing them to influence the market price. The key is a measure of this market power, representing the percentage change in price that results from a one percent increase in output. A higher key indicates greater market power.

The model suggests that firms will choose a pricing strategy that maximizes their profits, given their market power. This involves setting a price that balances the revenue from higher prices with the cost of producing more output. The key helps firms determine the optimal price by indicating the trade-off between revenue and cost.

The Schlüsselmodell has been influential in understanding the behavior of firms in oligopolistic markets. It has been applied to various industries, including oil, steel, and pharmaceuticals. However, the model has also been criticized for its simplifying assumptions and its focus on short-term behavior. Despite these limitations, the Schlüsselmodell remains a valuable tool for analyzing market power and pricing strategies in oligopolistic markets.