Download or read book An Agent Based Model of Heterogeneous Demand written by Matthias Müller and published by Springer. This book was released on 2017-06-14 with total page 173 pages. Available in PDF, EPUB and Kindle. Book excerpt: Matthias Müller makes a case for the particular role of the demand side in research on innovation. Based on a complex agent-based simulation model, he analyzes the versatile mutual relationships between consumers and producers within the innovation process. Instead of oversimplifying the demand side, the book aims to apply important aspects which too often are only applied to the supply side, e.g., the heterogeneity and bounded rationality of economic actors embedded in networks. The results offer a new perspective on the innovation process, proving that the demand side and consumers are important drivers of innovation, which must be included in future research for a full picture.

Download or read book Heterogeneous Consumers written by Anna Vyacheslavovna Yurko and published by . This book was released on 2008 with total page 212 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation studies the effect of heterogeneity in consumer incomes on outcomes in vertically differentiated markets. When products are differentiated in quality, the consumer's choice of a particular product is a function of her income. Thus, the distribution of incomes plays an important role in shaping the demand for individual products in vertically differentiated markets. The first two chapters of the dissertation study the demand for passenger cars and trucks in the US. These vehicles are differentiated by quality that depends on vehicle's age. The first chapter studies the relationship between the distribution of consumer incomes and the distribution of vehicle vintages using a dynamic, heterogeneous agents model. The model predicts that higher per capita incomes are associated with younger vehicle stocks, if the vehicle ownership rates are high. If the per capita incomes are low, and so are the endogenous vehicle ownership rates, increases in income may lead to the aging of vehicles, by encouraging entry of lower income consumers into vehicle ownership via purchases of older vehicles. Higher levels of income inequality are associated with older vehicle stocks. The second chapter of the dissertation asks whether some of the observed increases in the average age of vehicles in the US can be attributed to the rise in real consumer incomes and the resulting changes in the composition of demand for different vehicle vintages. The dynamic, non-stationary, heterogeneous agents model, estimated on the aggregate vehicle ownership data for the US over the 1967-2001 period, provides a positive answer to this question. The third chapter of the dissertation studies the effect of inequality in consumer incomes on firms' entry, location, and pricing decisions in a static oligopoly model of vertically differentiated products. This paper computes the Nash equilibrium of a three-stage game similar to Shaked and Sutton (1982), to find that greater inequality in consumer incomes leads to the entry of more firms and results in more intense quality competition among the entrants. The consumption inequality is lower and the aggregate consumer welfare is higher in economies with greater income inequality.

Download or read book Heterogeneous Consumers Segmented Asset Markets and the Effects of Monetary Policy written by Zeno Enders and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting for Agent Heterogeneity in Market and Policy Analysis written by Konstantinos Giannakas and published by Lulu.com. This book was released on 2018-12-19 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book presents a multi-market framework of market and policy analysis that explicitly accounts for the empirically relevant heterogeneity in consumer preferences and producer characteristics. The explicit consideration of consumer and producer heterogeneity represents a significant departure from the representative consumer and producer that have been at the center of most of the literature on market and policy analysis, and enables the distributional impacts of changes in market conditions and policies to be fully identified. The framework is used to analyze the system-wide market and welfare impacts of a number of changes in market conditions (like changes in consumer preferences, costs and market structure) and policies (like subsidies and taxes) on one of the products in the system. Consistent with a priori expectations, the use of the framework unveils impacts masked by the conventional market and policy analysis.

Download or read book Demand Estimation with Heterogeneous Consumers and Unobserved Product Characteristics written by Patrick Bajari and published by . This book was released on 2001 with total page 80 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the identification and estimation of preferences in hedonic discrete choice models of demand for differentiated products. In the hedonic discrete choice model, products are represented as a finite dimensional bundle of characteristics, and consumers maximize utility subject to a budget constraint. Our hedonic model also incorporates product characteristics that are observed by consumers but not by the economist. We demonstrate that, unlike the case where all product characteristics are observed, it is not in general possible to uniquely recover consumer preferences from data on a consumer's choices. However, we provide several sets of assumptions under which preferences can be recovered uniquely, that we think may be satisfied in many applications. Our identification and estimation strategy is a two stage approach in the spirit of Rosen (1974). In the first stage, we show under some weak conditions that price data can be used to nonparametrically recover the unobserved product characteristics and the hedonic pricing function. In the second stage, we show under some weak conditions that if the product space is continuous and the functional form of utility is known, then there exists an inversion between a consumer's choices and her preference parameters. If the product space is discrete, we propose a Gibbs sampling algorithm to simulate the population distribution of consumers' taste coefficients.

Download or read book Heterogeneous Consumption Experience written by Juin K. Chong and published by . This book was released on 1998 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Upgrading Heterogeneous Consumers written by Chiu Yu Ko and published by . This book was released on 2018 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study how a durable-goods monopolist upgrades heterogeneous consumers in an infinite horizon model of quality growth. While unable to charge consumers based on their purchase histories, the monopolist may engage in both inter- and intra-temporal price discriminations: charge different prices for goods of the same quality over time and offer different buyback prices for earlier, lower quality versions. First, we consider that there is a frictionless secondhand market such that consumers are anonymous. The monopolist always keeps high-value consumers abreast of the latest development. Moreover, when consumers are similar, the monopolist also upgrades low-value consumers at the same pace as the high-value ones. Otherwise, the monopolist completely ignores low-value consumers and focuses only on the high-value ones. Second, we consider where there is no secondhand market and consumers are semi-anonymous.If consumers and the monopolist are impatient, the outcome is the same as in an anonymous market. Otherwise, besides the efficient pooling equilibrium, there are three interesting inefficient upgrade patterns where high-value consumers always upgrade every period: the low-value consumers (1) keep a constant quality difference from the high-value ones, (2) upgrade in cycles but below the quality frontier, and (3) upgrade to the frontier in cycles.

Download or read book Heterogeneous Consumers and Trade Patterns in a Monopolistically Competitive Setting written by Alexander Osharin and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Heterogeneous Consumers and Fiscal Policy Shocks written by and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Equilibrium Sorting of Heterogeneous Consumers Across Locations written by Lars Patrick Nesheim and published by . This book was released on 2001 with total page 180 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Impact of Economic Policies on Heterogeneous Consumers written by Rongzhang Wang and published by . This book was released on 2018 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt: Economic policies can have distributional effects on the market, and often the heterogeneity is tied to the differentiated socio-economic status of consumers. In this dissertation, I study two kinds of policies: rebate programs for clean vehicle buyers, and banking deregulation to stimulate credit supply. The results show that a rationed, income-capped program had large, unexpected spillover effects; while a national policy affected only the lower-valued segment of the housing market. In Chapter 1, we examine the informational spillover effects on clean vehicles sales associated with a highly-rationed rebate program that targeted moderate to lower lower-income Californians. By exploiting differences of the geographic roll-out in this program, we find that it was associated with approximately at least 2,645 additional clean vehicles sales beyond the 712 vehicles that directly received subsidies. We also calculate the direct environmental benefits of both those vehicles receiving direct subsidies and "spillover" vehicles by estimating local reductions in gasoline consumption and increases in electricity generation attributable to the program, and their marginal effect on human health. Although the per vehicle benefits were lower for the induced "spillover" vehicles then for the subsidized vehicles, the aggregate benefits provided by the spillover vehicles was one third larger than those that were directly subsidized. Using a structural model, I further explore how subsidies affect electric vehicle sales and prices, and the welfare consequences of such schemes in Chapter 2. I begin with providing empirical evidence that government incentive programs have helped increase electric vehicle sales. Next, I build and estimate a static market equilibrium model, taking into consideration subsidies, observed and unobserved properties of vehicles, heterogeneous consumer preferences, and marginal cost of production. Finally, I simulate the effects of government incentive programs on electric vehicle sales and prices, and estimate their welfare consequences. The final chapter is dedicated to the effect of credit market on housing prices. Does a financial market expansion provide the same benefits to households of all income levels? In this paper, we answer the question by studying the 1994 Riegle-Neal Act, a national banking deregulation rule. Our results suggest that the deregulation leads to higher levels of credit supply from banks. And in turn, 1% increase in credit supply leads to 0.51-0.52% increase in the capital gains of lower-valued properties. Median and higher-valued properties are not affected significantly by the credit shock. A possible explanation is that the channels of credit expansion, including lowered down payment, are mostly relevant to low-income home buyers, who are also the major players in the lower-valued property market.

Download or read book Heterogeneous Consumers Segmented Asset Markets and the Real Effects of Monetary Policy written by Zeno Enders and published by . This book was released on 2018 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper proposes a novel mechanism by which changes in the distribution of money holdings have real effects. Specifically, I develop a flexible-price model of segmented asset markets that generates real aggregate effects of monetary policy through the dependence of optimal markups on the heterogeneity of money holdings. Because varieties of consumption bundles are purchased sequentially, newly injected money disseminates slowly throughout the economy via second-round effects. The model predicts a short-term inflation-output trade-off, a liquidity effect, countercyclical markups, and procyclical wages after monetary shocks. Among other correlations of financial variables, it also reproduces the empirical, negative relationship between changes in the money supply and markups.

Download or read book Imperfect Competition and Heterogeneous Consumers written by Michael L. Katz and published by . This book was released on 1981 with total page 458 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Heterogeneous Consumers Vertical Product Differentiation and the Rate of Innovation written by Josef Zweimüller and published by . This book was released on 1996 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Price Dispersion in Duopolies with Heterogeneous Consumers written by Eleanore Brickell and published by . This book was released on 2009 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Customer Centricity written by Peter Fader and published by . This book was released on 2012 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: Not all customers are created equal. Despite what the tired old adage says, the customer is not always right. Not all customers deserve your best efforts: in the world of customer centricity, there are good customers...and then there is pretty much everybody else. Upending some of our most fundamental beliefs, renowned behavioral data expert Peter Fader, Co-Director of The Wharton Customer Analytics Initiative, helps businesses radically rethink how they relate to customers. He provides insights to help you revamp your performance metrics, product development, customer relationship management and organization in order to make sure you focus directly on the needs of your most valuable customers and increase profits for the long term.

Download or read book Asset Holdings of Heterogeneous Consumers with Endogenous Time Preference written by Peter Reginald Hartley and published by . This book was released on 1994 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: