EconPapers    
Economics at your fingertips  
 

Linear demand systems for differentiated goods: Overview and user’s guide

Philippe Choné and Laurent Linnemer ()

International Journal of Industrial Organization, 2020, vol. 73, issue C

Abstract: Linear demand systems and quasi-linear quadratic utility models are widely used in industrial economics. We clarify the link between the two settings and explain their exact origin as it seems to be little known by practitioners. We offer practical recommendations to achieve consistency, tractability and a reasonable degree of generality when using the linear demand framework. We show that all tractable versions of the model used in practice are (almost) identical and have a mean-variance structure. We provide concise, ready-to-use formulae for the symmetric model. Finally, we revisit and extend the asymmetric model of Shubik and Levitan.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718720300862
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Linear demand systems for differentiated goods: Overview and user's guide (2020) Downloads
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: https://EconPapers.repec.org/RePEc:eee:indorg:v:73:y:2020:i:c:s0167718720300862

DOI: 10.1016/j.ijindorg.2020.102663

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-10-20
Handle: RePEc:eee:indorg:v:73:y:2020:i:c:s0167718720300862