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1999•RePEc: Research Papers in EconomicsOpen access

A QUADRATIC INVERSE DEMAND SYSTEM

Daniele Moro, Paolo Sckokai, Moro, Daniele, Sckokai, Paolo

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Abstract

We derive a (quadratic) inverse demand system (IQUAIDS), that generalizes the (almost ideal) inverse demand system. We discuss how the assumptions of separability and concavity can be simultaneously accommodated within the model, thus giving a (locally) separable and concave quadratic demand system. An empirical application is provided for illustrative purposes.

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What this paper is about

We derive a (quadratic) inverse demand system (IQUAIDS), that generalizes the (almost ideal) inverse demand system. We discuss how the assumptions of separability and concavity can be simultaneously accommodated within the model, thus giving a (locally) separable and concave quadratic demand system. An empirical application is provided for illustrative purposes.

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Available abstract

We derive a (quadratic) inverse demand system (IQUAIDS), that generalizes the (almost ideal) inverse demand system. We discuss how the assumptions of separability and concavity can be simultaneously accommodated within the model, thus giving a (locally) separable and concave quadratic demand system. An empirical application is provided for illustrative purposes.

Key concepts: Inverse demand function, Inverse, Quadratic equation, Almost ideal demand system, Separable space, Ideal (ethics), Mathematics, Mathematical optimization

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