The Benefit Function Approach to Modeling Price-Dependent Demand Systems: An Application of Duality Theory

Keith Robert McLaren () and K. K. Gary Wong

American Journal of Agricultural Economics, 2009, vol. 91, issue 4, pages 1110-1123

Abstract: In this article, we advocate more extensive use of the benefit function in specifying price-dependent or inverse demand models. We demonstrate how duality theory may be used to establish the interrelationships between the Marshallian (or Hicksian) inverse demands and Luenberger's adjusted price functions, allowing estimable inverse demands to be derived directly from a benefit function. We estimate two systems of inverse demands for Japanese quarterly fish consumption. Results indicate that the procedures and methods employed here appear promising, and may prove beneficial for quantity and welfare analysis when modeling systems of inverse demand functions. Copyright Copyright 2009 Agricultural and Applied Economics Association.

Date: 2009

Downloads: (external link)
http://www.blackwell-synergy.com/servlet/useragent ... &year=2009&part=null link to full text (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The Benefit Function Approach to Modeling Price-Dependent Demand Systems: An Application of Duality Theory (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:ajagec:v:91:y:2009:i:4:p:1110-1123

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0002-9092

Access Statistics for this article

American Journal of Agricultural Economics is edited by Peter Berck, Robert J. Myers, Ian M. Sheldon and B. Wade Brorsen

More articles in American Journal of Agricultural Economics from American Agricultural Economics Association
Series data maintained by Christopher F. Baum ().