On the Form of Market Demand Functions

Econometrica ◽  
1974 ◽  
Vol 42 (1) ◽  
pp. 207 ◽  
Author(s):  
J. Case
Keyword(s):  
Market Demand ◽  
Demand Functions

Market Demand Functions in the CAPM

1997 ◽  
Author(s):  
Jean-Marc Bottazzi ◽  
Thorsten Hens ◽  
Andreas Löffler
Keyword(s):  
Market Demand ◽  
Demand Functions

scholarly journals Limitations of modern microeconomic theory of consumer choice: Sociological perspective

Sociologija ◽  
2008 ◽  
Vol 50 (3) ◽  
pp. 313-326 ◽  
Author(s):  
Ognjen Radonjic
Keyword(s):  
Theoretical Model ◽  
Consumer Choice ◽  
Microeconomic Theory ◽  
Market Demand ◽  
Sociological Perspective ◽  
Neoclassical Theory ◽  
Demand Functions ◽  
Sociological Factors ◽  
And Behavior ◽  
Better Than

Neoclassical theory of consumer choice needs to be reformed. Assumption that consumer choice is not influenced by the choice of others is in collision with reality. New and better theory of consumer choice is unimaginable without incorporation of intersubjective factors into the model of derivation of individual and aggregate (market) demand functions. Goal of this study is to underline widely neglected sociological factors that have significant influence on motivation and behavior of consumers. Inclusion of these factors into modern microeconomic theory is of essential importance if we are about to construct theoretical model aimed to describe reality in which we daily exist better than its predecessor did.

scholarly journals LEARNING TO PLAY BEST RESPONSE IN DUOPOLY GAMES

2004 ◽  
Vol 06 (03) ◽  
pp. 443-459 ◽  
Author(s):  
JAN WENZELBURGER
Keyword(s):  
Demand Function ◽  
Optimal Strategies ◽  
Market Demand ◽  
Response Behavior ◽  
Estimation Errors ◽  
Demand Functions ◽  
Best Response ◽  
Game Theoretic ◽  
Payoff Functions ◽  
Duopoly Market

We consider a quantity-setting duopoly market where firms lack perfect knowledge of the market demand function. They use estimated and therefore misspecified demand functions instead and determine their optimal strategies from the corresponding subjective payoff functions. The central issue of this paper is the question under which conditions a firm can learn the true demand function as well as the response behavior of its competitor from repeated estimations of historical market data. As soon as estimation errors are negligible, a firm is able to play best response in the usual game theoretic sense.

scholarly journals Income elasticity of demand within individual consumer groups and the level of income elasticity of the entire market demand 

2012 ◽  
Vol 52 (No. 9) ◽  
pp. 412-417
Author(s):  
P. Syrovátka
Keyword(s):  
Consumer Behaviour ◽  
Income Elasticity ◽  
Meat Products ◽  
Market Demand ◽  
Demand Functions ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Aggregation Equation ◽  
Application Potential ◽  
Income Elasticity Of Demand

The paper is focused on the derivation of the mathematical relationship among the income-elasticity level of the entire market demand and the income-elasticity values of the demand functions of the consumers’ groups buying on the defined market. The determination of the mathematical term was based on the linearity of the relevant demand functions. Under the linearity assumption, the income elasticity coefficient of the entire market demand equals the weighted sum of the income-demand elasticities of the differentiated consumer groups buying on the given market. The weights in the aggregation formula are defined as the related demand shares, i.e. as the proportions of the groups’ demands to the entire market demand. The derived aggregation equation is quite held if no demand interactions (e.g. the snob or fashion effect) are recorded among differentiated consumers’ groups. The derived formula was examined by using empirical data about the consumer behaviour of Czech households in the market of meat and meat products (Czech Statistical Office). However, the application potential of the achieved term for the income-elasticity aggregations is much broader within the consumer-behaviour analysis. In addition to the subject aggregations of the demand functions, we can also apply the derived formula for the analysis and estimations of the income elasticities within the demand-object aggregations, i.e. the multistage analysis of the income elasticity of consumer demand. Another possibility of the use of the aggregation equation is for the evaluations and estimations of the income elasticity of the region-demand functions in relation to the subregions’ demands or reversely.

scholarly journals Supply Chain Decision-Making and Coordination considering Anticipated Regret under Price Discount

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Jie Jian ◽  
Huipeng Li ◽  
Nian Zhang ◽  
Jiafu Su
Keyword(s):  
Supply Chain ◽  
Sensitivity Coefficient ◽  
Pricing Strategy ◽  
Market Demand ◽  
Anticipated Regret ◽  
Consumer Heterogeneity ◽  
Price Discount ◽  
Demand Functions ◽  
Homogeneous Product ◽  
The Impact

The increasing homogeneous product market has made more competition among companies to focus on improving customers’ experience. In order to get more competitive advantages, companies often launch discount products to attract consumers. However, stimulated by discount products, the perception of anticipated regret is becoming stronger, which is an inevitable issue in front of companies with price discount strategy. Considering the impact of anticipated regret for discount products, this paper quantitatively describes the utility functions and deduces the demand functions of original price products and discount products. The theoretical analysis and numerical simulation are used to analyze centralized and decentralized models of supply chain for discount products. On its basis, the revenue-sharing contract is designed to optimize the profits of supply chain. This paper finds that the price of products increases first and then decreases with the increase of regret sensitivity coefficient and consumer heterogeneity. When the regret sensitivity coefficient and consumer heterogeneity are lower, companies in the supply chain can adopt the “skimming pricing” strategy in order to obtain more profits. When the regret sensitivity coefficient and consumer heterogeneity increase, companies in the supply chain can adopt “penetrating pricing” strategies to stimulate market demand. For high regret consumers, manufacturers can adopt a “commitment advertising” strategy to promise price and quality, and retailers can adopt a “prestige pricing” strategy to reduce consumer perception of regret. In response to products with higher differences in consumer acceptance, manufacturers can adopt a “differentiated customization” strategy to meet different types of consumer demand and retailers can adopt a “differential pricing” strategy for precise marketing.

Market Demand Functions in the Capital Asset Pricing Model

1998 ◽  
Vol 79 (2) ◽  
pp. 192-206 ◽  
Author(s):  
Jean-Marc Bottazzi ◽  
Thorsten Hens ◽  
Andreas Löffler
Keyword(s):  
Asset Pricing ◽  
Capital Asset Pricing Model ◽  
Capital Asset Pricing ◽  
Market Demand ◽  
Pricing Model ◽  
Capital Asset ◽  
Demand Functions ◽  
Asset Pricing Model
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