The Benefit Function Approach to Modeling Price-Dependent Demand Systems: An Application of Duality Theory
In this article, we advocate more extensive use of the benefit function in specifying price-dependent or inverse demand models. We demonstrate how duality theory may be used to establish the interrelationships between the Marshallian (or Hicksian) inverse demands and Luenberger's adjusted price...
| Veröffentlicht in: | American Journal of Agricultural Economics. - Oxford University Press. - 91(2009), 4, Seite 1110-1123 |
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| Format: | Online-Aufsatz |
| Sprache: | English |
| Veröffentlicht: |
2009
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| Zugriff auf das übergeordnete Werk: | American Journal of Agricultural Economics |
| Schlagworte: | benefit functions duality theory inverse demands numerical inversion estimation method Economics Mathematics Biological sciences Applied sciences Philosophy Business |
| Zusammenfassung: | In this article, we advocate more extensive use of the benefit function in specifying price-dependent or inverse demand models. We demonstrate how duality theory may be used to establish the interrelationships between the Marshallian (or Hicksian) inverse demands and Luenberger's adjusted price functions, allowing estimable inverse demands to be derived directly from a benefit function. We estimate two systems of inverse demands for Japanese quarterly fish consumption. Results indicate that the procedures and methods employed here appear promising, and may prove beneficial for quantity and welfare analysis when modeling systems of inverse demand functions. |
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| ISSN: | 14678276 |