A Model Illustrating Consumer Inconstancy: Demand and Supply Sides

DOI: 10.4236/me.2013.412088   PDF   HTML   XML   2,842 Downloads   4,010 Views  

Abstract

John M. Clark in his classic 1923 Economics of Overhead Costs asks if anyone knows what it costs to supply demand irregularity. He also asks if consumers need demand irregularity, consciously or unconsciously. We provide a model for a plausible theoretical basis to begin to answer each question. The models permit mathematical proofs and graphic demonstrations of the costs to society of supplying for demand irregularity and of the willingness to pay on the part of consumers for demand irregularity. JEL (D24).

 

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G. Aranoff, "A Model Illustrating Consumer Inconstancy: Demand and Supply Sides," Modern Economy, Vol. 4 No. 12, 2013, pp. 821-826. doi: 10.4236/me.2013.412088.

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1] G. Aranoff, “John M. Clark’s Concept of Too Strong Competition and a Possible Case: The U.S. Cement Industry,” Eastern Economic Journal, Vol. 17, No. 1, 1991, pp. 45-60.
[2] J. M. Clark, “Studies in the Economics of Overhead Costs,” The University of Chicago Press, Chicago, 1923.
[3] G. Aranoff, “Competitive Manufacturing with Fluctuating Demand and Diverse Technology: Mathematical Proofs and Illuminations on Industry Output-Flexibility,” Economic Modelling, Vol. 28, No. 3, 2011, pp. 1441-1450.
http://dx.doi.org/10.1016/j.econmod.2011.02.016
[4] G. Aranoff, “A Mathematical Proof: Focus during Weekdays Should be on Supply for the Sabbath a Support for Workable Competition,” Modern Economy, Vol. 3, No. 8, 2012, pp. 926-930.
http://dx.doi.org/10.4236/me.2012.38116

  
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