I've maintained in the past that even if that short-run effect takes place, democratization remains the proper long-term strategy.
A dominant firm that follows a predatory pricing strategy cuts price below rivals' average cost, even if this means short-run losses for itself as well, to drive rivals from the market.
Bohi suggests that aggregated data tend to produce larger long-run price elasticities, whereas disaggregated data tend to produce slightly larger short-run price elasticities.
Nonetheless, we feel that one cannot ignore short-run price effects that result from changes in import demand factors.
Where firms face limited information, Baumol has argued that firms will focus on sales revenue maximization as the short-run objective of their decision-making.
This analysis indicates the omission of substitutes does not significantly influence short-run price elasticity estimates, but results in significantly lower long-run estimates.
Alison Hardy, president of FabriCad Consulting, agrees with them that it is critical that digital printing becomes feasible for short-run work.
Further, the short-run impacts of such a program need to be assessed.
Increase in poverty in the short-run is a price that has to be paid for long-term economic growth.
Proposals to increase dividends, if implemented, may reduce investor and hence management interest in short-run stock price fluctuations.