Exact Aggregation and A Representative Consumer

1989 ◽  
Vol 104 (3) ◽  
pp. 621 ◽  
Author(s):  
Arthur Lewbel
Keyword(s):  
Representative Consumer

Aggregarion Without the Aggravation? Nonparametric Analysis of the Representative Consumer

2011 ◽  
Author(s):  
Laurens Cherchye ◽  
Ian Crawford ◽  
Bram De Rock ◽  
Frederic Vermeulen
Keyword(s):  
Nonparametric Analysis ◽  
Representative Consumer

scholarly journals On the Microfoundation of Linear Oligopoly Demand

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Iwan Bos ◽  
Dries Vermeulen
Keyword(s):  
Utility Function ◽  
Aggregate Demand ◽  
Demand System ◽  
Representative Consumer ◽  
Aggregate Utility

AbstractWe critically assess the representative consumer with quadratic aggregate utility function which forms the foundation of a well-known class of linear oligopoly demand structures. It is argued that this approach is problematic and redundant. Regarding the latter, we show how the same demand system can be derived directly from a population of heterogeneous buyers for any number of products. Welfare analyses based on aggregate demand is shown to be sensitive to the underlying microfoundation.

A New Look into the Determinants of the Ecological Discount Rate: Disentangling Social Preferences

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
Luciana Echazu ◽  
Diego Nocetti ◽  
William T. Smith
Keyword(s):  
Term Structure ◽  
Discount Rate ◽  
Environmental Quality ◽  
Social Preferences ◽  
Inequality Aversion ◽  
The Social ◽  
Representative Consumer ◽  
Change Mitigation ◽  
Over Time

Abstract How should changes in environmental quality occurring in the future be discounted? To answer this question we consider a model of “ecological discounting”, where the representative consumer has a utility function defined over two attributes, consumption and environmental quality, which evolve stochastically over time. We characterize the determinants of the social discount rate and its behavior over time using a preference structure that disentangles attitudes towards intertemporal inequality, attitudes towards risk, and tastes over consumption and environmental quality. We show that the degree of substitutability between consumption and environmental quality, the degree of risk aversion, the degree of inequality aversion, and the rate at which these attitudes change as natural and man-made resources evolve over time are all important aspects of the ecological discount rate and its term structure. Our analysis suggests that over medium and long term horizons the ecological discount rate should be below the rate of time preference, supporting recent proposals for immediate action towards climate change mitigation.

Strategic Remanufacturing under Competition

2019 ◽  
Vol 16 (1) ◽  
pp. 85-107
Author(s):  
Zhongwen Ma ◽  
Ashutosh Prasad ◽  
Suresh P. Sethi
Keyword(s):  
Utility Maximization ◽  
New Products ◽  
New Product ◽  
Substitution Effects ◽  
Symmetric Equilibrium ◽  
Lower Margin ◽  
Demand Functions ◽  
Customer Preferences ◽  
Representative Consumer ◽  
The One

Abstract We investigate firms’ remanufacturing strategies for the case of a duopoly. On the one hand, remanufactured products cannibalize sales of new products of the same firm thereby hurting its profits. On the other hand, they can be part of a profitable marketing strategy that targets different customer preferences by providing a larger number of alternatives to customers. This paper studies the tradeoff between these effects and how it is influenced by competition. We develop a model where demand functions for new and remanufactured products of each firm are derived from utility maximization by a representative consumer. This allows us to capture preference and substitution effects between all offered products in the market. We discuss how equilibrium strategies are affected by factors such as competition, substitutability, production cost as well as remanufacturing cost. For example, when competitive intensity between new and new products, and remanufactured and remanufactured products, is (high), both (neither) firms offer remanufactured products in a symmetric equilibrium. If substitution between new and remanufactured products of the same firm is low, but the remanufactured product has a lower margin than the new product, firms can be worse off from remanufacturing.

The consistency of welfare judgments with a representative consumer

1988 ◽  
Vol 44 (2) ◽  
pp. 269-280 ◽  
Author(s):  
James Dow ◽  
Sérgio Ribeiro da Costa Werlang
Keyword(s):  
Representative Consumer

The Representative Consumer Concept and Inequality

Economica ◽  
1982 ◽  
Vol 49 (196) ◽  
pp. 461 ◽  
Author(s):  
Panos Pashardes
Keyword(s):  
Representative Consumer

A Representative Consumer Theory of the Logit Model

1988 ◽  
Vol 29 (3) ◽  
pp. 461 ◽  
Author(s):  
S. P. Anderson ◽  
A. De Palma ◽  
J.-F. Thisse
Keyword(s):  
Logit Model ◽  
Consumer Theory ◽  
Representative Consumer

Acceptance of vitamin D-fortified products in Germany – A representative consumer survey

2015 ◽  
Vol 43 ◽  
pp. 53-62 ◽  
Author(s):  
Arne Sandmann ◽  
Jonathan Brown ◽  
Gunnar Mau ◽  
Mirjam Saur ◽  
Michael Amling ◽  
...  
Keyword(s):  
Vitamin D ◽  
Consumer Survey ◽  
Representative Consumer
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