Some Thoughts on Demand Theory

5 Pages Posted: 18 Jan 2009

See all articles by Lynn Dellenbarger

Lynn Dellenbarger

Dellenbarger & Associates

Lihong Zhu

Washington State University

Zhimin Chen

Independent

Pim Sadlier

Independent

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

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

Lynn E. Dellenbarger

Dellenbarger & Associates ( email )

P.O. Box 83980
Baton Rouge, LA 70884
United States

Lihong Zhu (Contact Author)

Washington State University ( email )

Pullman, WA 99164
United States

Zhimin Chen

Independent ( email )

Pim Sadlier

Independent ( email )

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