Modelling Consumer Behavior by Inverse Demand Functions

DOI: 10.4236/tel.2013.34039   PDF   HTML     3,910 Downloads   6,165 Views  

Abstract

In this article a model of consumer behavior will be developed, based on preferences on the price space reflecting the individuals willingness to pay for certain quantities of commodities under the supposition that the individual is restricted to his or her income. Firms offer certain amounts of commodities at the market and consumers react to these offers by their willingness to pay. Existence and continuity of the inverse demand function describing consumers behavior under appropriate conditions will be shown. Furthermore, differences between a model of consumer behavior based on preferences on the commodity space and that which is based on preferences on the price space will be pointed out.

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S. Fuchs-Seliger, "Modelling Consumer Behavior by Inverse Demand Functions," Theoretical Economics Letters, Vol. 3 No. 4, 2013, pp. 229-232. doi: 10.4236/tel.2013.34039.

Conflicts of Interest

The authors declare no conflicts of interest.

References

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