other products by an unusually low elasticity of demand with respect to product failure. While consumers in other markets … potential cures accumulated over time. Because no one was ever cured and consumers possessed a highly inelastic demand with … respect to product failures, demand was unrelenting. In short, patent medicines flourished not despite their dubious medicinal …

demand. The optimal tariff is a flat rate if marginal cost of production is low compared to a consumer’s degree of loss … aversion and if there is enough variation in the consumer’s demand. Moreover, if consumers differ with respect to the degree of …-Rate Tariffs ; Nonlinear Pricing ; Uncertain Demand …