The positive resolution of the microeconomic problem of market demand: issues of methodology and verification

Vladimir Gorbunov

MPRA Paper from University Library of Munich, Germany

Abstract: The problem of consumer demand in modern (micro)economic theory is that this theory contains a normative theory of individual demand, but does not contain a positive theory of market demand – an object of real interest for economists-practitioners and governments. This failure has led to failures in equilibrium theory and applied demand analysis. The article presents a methodological analysis of this demand problem, created within the framework of general scientific methodology and with rejection of the individual demand theory. The studying object of this theory, is a fuzzy set of market buyers regarded as a holistic object and called the ‘statistical ensemble of consumers.’ This theory formally retains the individual demand theory, but it is a positive theory verifiable by trade statistics. The verification method of the theory is a development of the Afriat-Varian non-parametric one with the simultaneous calculation of economic indexes reflecting the population preferences.

Keywords: market demand problem; methodological analysis; statistical ensemble of consumers; verification; Konüs indexes (search for similar items in EconPapers)
JEL-codes: B59 C43 C51 D11 (search for similar items in EconPapers)
Date: 2022-11-30
New Economics Papers: this item is included in nep-hme
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