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Comparative Statics and Elasticity of Expected Demand Functions

In: Congestion-Prone Services Under Quality Competition

Author

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  • Dong-Joo Moon

    (Seoul National University)

Abstract

In Chap. 4, we have developed the expected demand function (the demand function, for short) of an option for a number of SQCPs under the random perception approach. This individual demand function for SQCPs estimates the expected value of the demand for a particular option with respect to the vector of independent variables composed of the prices and service times of all options in a market. The individual demand function is expressed as a Riemann multiple integral with respect to the random net-value-of-times of all heterogeneous service groups. For this individual demand function, the market demand function of an option can be developed by simply adding the integrands of multiple integrals for all consumers.

Suggested Citation

  • Dong-Joo Moon, 2011. "Comparative Statics and Elasticity of Expected Demand Functions," Advances in Spatial Science, in: Congestion-Prone Services Under Quality Competition, edition 127, chapter 0, pages 85-120, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-20189-9_5
    DOI: 10.1007/978-3-642-20189-9_5
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