Topic
Price elasticity of demand
About: Price elasticity of demand is a research topic. Over the lifetime, 7952 publications have been published within this topic receiving 192767 citations. The topic is also known as: PED.
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TL;DR: This work estimates how cost sharing, the portion of the bill the patient pays, affects the demand for medical services and rejects the hypothesis that less favorable coverage of outpatient services increases total expenditure.
Abstract: We estimate how cost sharing, the portion of the bill the patient pays, affects the demand for medical services. The data come from a randomized experiment. A catastrophic insurance plan reduces expenditures 31 percent relative to zero out-of-pocket price. The price elasticity is approximately -0.2. We reject the hypothesis that less favorable coverage of outpatient services increases total expenditure (for example, by deterring preventive care or inducing hospitalization).
2,063 citations
TL;DR: In this article, the authors present a summary of demand response in deregulated electricity markets and highlight the most common indices used for DR measurement and evaluation, and some utilities' experiences with different demand response programs are discussed.
1,751 citations
TL;DR: Elasticities of travel demand with respect to density, diversity, design, and regional accessibility are derived from selected studies and may be useful in travel forecasting and sketch planning and have already been incorporated into one sketch planning tool, the Environmental Protection Agency’s Smart Growth Index model.
Abstract: The potential to moderate travel demand through changes in the built environment is the subject of more than 50 recent empirical studies. The majority of recent studies are summarized. Elasticities of travel demand with respect to density, diversity, design, and regional accessibility are then derived from selected studies. These elasticity values may be useful in travel forecasting and sketch planning and have already been incorporated into one sketch planning tool, the Environmental Protection Agency's Smart Growth Index model. In weighing the evidence, what can be said, with a degree of certainty, about the effects of built environments on key transportation "outcome" variables: trip frequency, trip length, mode choice, and composite measures of travel demand, vehicle miles traveled (VMT) and vehicle hours traveled (VHT)? Trip frequencies have attracted considerable academic interest of late. They appear to be primarily a function of socioeconomic characteristics of travelers and secondarily a function...
1,706 citations
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06 Sep 2015TL;DR: A multinomial logit model of brand choice, calibrated on 32 weeks of purchases of regular ground coffee by 100 households, shows high statistical significance for the explanatory variables of brand loyalty, size loyalty, presence/absence of store promotion, regular shelf price and promotional price cut as discussed by the authors.
Abstract: A multinomial logit model of brand choice, calibrated on 32 weeks of purchases of regular ground coffee by 100 households, shows high statistical significance for the explanatory variables of brand loyalty, size loyalty, presence/absence of store promotion, regular shelf price and promotional price cut. The model is parsimonious in that the coefficients of these variables are modeled to be the same for all coffee brand-sizes. The calibrated model predicts remarkably well the share of purchases by brand-size in a hold-out sample of 100 households over the 32-week calibration period and a subsequent 20-week forecast period. The success of the model is attributed in part to the level of detail and completeness of the household panel data employed, which has been collected through optical scanning of the Universal Product Code in supermarkets.
Three short-term market response measures are calculated from the model: regular (depromoted) price elasticity of share, percent increase in share for a promotion with a median price cut, and promotional price cut elasticity of share. Response varies across brand-sizes in a systematic way with large share brand-sizes showing less response in percentage terms but greater in absolute terms. On the basis of the model a quantitative picture emerges of groups of loyal customers who are relatively insensitive to marketing actions and a pool of switchers who are quite sensitive.
This article was originally published in Marketing Science, Volume 2, Issue 3, pages 203--238, in 1983.
1,594 citations
TL;DR: In this article, a model of individual behavior in the purchase and utilization of energy-using durables is presented, where the tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized.
Abstract: This article presents a model of individual behavior in the purchase and utilization of energy-using durables. The tradeoff between capital costs for more energy efficient appliances and operating costs for the appliances is emphasized. Using data on both the purchase and utilization of room air conditioners, the model is applied to a sample of households. The utilization equation indicates a relatively low price elasticity. The purchase equation, based on a discrete choice model, demonstrates that individuals do trade off capital costs and expected operating costs. The results also show that individuals use a discount rate of about 20 percent in making the tradeoff decision and that the discount rate varies inversely with income.
1,361 citations