Some Thoughts on Demand Theory
5 Pages Posted: 18 Jan 2009
Date Written: January 16, 2009
Abstract
Demand theory has a rich heritage, but some underlying principles still need to be looked at. A person's utility really fluctuates more like Maslow's Hierarchy of Needs and man is not perfectly rational or all knowing. Logit analysis has a place in demand estimation. Researchers need to look more at the household's budget constraint besides just interest rates to determine household buying patterns.
Keywords: Demand, Logit analysis, utility, Maslow's Hierarchy, budget constraint, interest rates
Suggested Citation: Suggested Citation
Dellenbarger, Lynn E. and Zhu, Lihong and Chen, Zhimin and Sadlier, Pim, Some Thoughts on Demand Theory (January 16, 2009). Available at SSRN: https://ssrn.com/abstract=1329121 or http://dx.doi.org/10.2139/ssrn.1329121
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