On decomposing the elasticity of demand
By: Thomas J. Steenburgh .
Contributors: Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 05-074; Working paper (Harvard Business School. Division of Research) -- 05-074
Publisher: Division of Research, Harvard Business School
Published: 2005
Place of publication: Boston
Language: eng
Number of pages: 46
Description: In this article, I compare three methods of decomposing the elasticity of own-good demand. The first two methods attribute growth in own-good demand to changes in demand for competing goods, and the third method attributes growth to changes in consumers' decisions. Two of the three methods have not been precisely interpreted, but I show that all are accurate as long as precise interpretations are given to them.
Notes: Includes bibliographical references.