Abstract: When a firm must choose price and output before observing demand and therefore risks unsold output, the standard mark-up rule applies with the elasticity being the elasticity of the average quantity sold with respect to price and marginal cost being the marginal cost of an expected unit sold, computed as the marginal cost of a unit produced divided by the expected fraction of the marg...

In this research, the demand function of drinkable  water in Qazvin Province was estimated using dynamic and static methods. The required data were collected from the data of the provinces of Qazvin in the time period (1996-2016) and collected by referring to the statistical system of Statistics Center of Iran and the provincial planning and budget organization of Qazvin Province. The explanato...

Since 1970, the share of income spent on housing grew along with incomes and the relative price of housing. This rising share is consistent with housing being a necessity when demand is sufficiently price inelastic. We estimate housing demand parameters using compensated and uncompensated frameworks over space and time, testing restrictions imposed by demand theory and household mobility. Estim...

Nowadays, demand response programs (DRPs) play an important role in price reduction and reliability improvement. In this paper, an optimal integrated model for the emergency demand response program (EDRP) and dynamic economic emission dispatch (DEED) problem has been developed. Customer’s behavior is modeled based on the price elasticity matrix (PEM) by which the level of DRP is determined for ...

We develop a competition index for differentiated products oligopoly and apply it to assessing the impact of concentration on price in hospital markets in California. Our index, which we term LOCI, is bounded between zero and one and increases with the competitiveness of a market. We use 1992-1995 hospital data from California to estimate the impact of concentration on price using our new conce...

current article is allocated to the report of a research in which the income elasticities of urban families” demand for public education in time period of 2008-2013 were estimated separately according to the income deciles and by applying rotterdam demand system, it was clarified that public education is normal commodity. different size of estimative elasticities indicated that public education...

Objective: To estimate cigarette demand and to simulate a tax policy targeted to reduce tobacco consumption. Materials and methods: Demand was estimated using a vector error correction model. Simulation exercises present the impact of a tax increase on consumption and revenues. Results: Changes in real income and the real price of cigarettes affect the demand for cigarettes in Argentina. Th...

as an industrial crop, sugar beet plays an important role in meeting domestic demand for sugar. given the higher level of imported sugar iniran, the application of protectionist policies is an approach for supplying required sugar. one of these policies is technological improvement. in order to study the effect of this policy, sugar beet supply and demand equations in 1971-2008 were fitted by t...

We estimate the slope of the Marshallian demand curve for newly auctioned FHLB discount notes and investigate the impacts of arbitrage risk and heterogeneity of beliefs on demand elasticity. Our dataset contains roughly 2,900 observations of two price-quantity pairs—the first from a pre-auction dealer survey, the second from actual auction results. Using this unique dataset, we find that demand...

We explore a methodological improvement to the standard dynamic demand model for petrol–a general model which allows for slowly evolving, unobservable habits. If this habit formation model is correct, then standard estimation techniques produce inconsistent estimates. We find price elasticities of -0.13 (short-run) and -0.20 (long-run). Importantly, standard techniques are misleading about the ...