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Log-linear demand systems with differentiated products are inconsistent with the representative consumer approach

Author

Listed:
  • Takanori Adachi

    (Nagoya University)

  • Takeshi Ebina

    (Shinshu University)

Abstract

We argue that log-linear demands with differentiated products, which are viewed as useful modeling from an empirical standpoint, are generated from the representative consumer'Â’s utility only in a restrictive form.

Suggested Citation

  • Takanori Adachi & Takeshi Ebina, 2016. "Log-linear demand systems with differentiated products are inconsistent with the representative consumer approach," Economics Bulletin, AccessEcon, vol. 36(1), pages 260-267.
    • Handle: RePEc:ebl:ecbull:eb-15-00678
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Log-linear demands; Product differentiation; Representative consumer approach;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D4 - Microeconomics - - Market Structure, Pricing, and Design

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