The consumers may change their internal reference demand price when new price information becomes available. Based on the viewpoint, Chen and Chen [1998] had developed a few methods to construct a dynamic demand function while considering the spreading of market trade price information. However, not only the consumers' internal reference demand price but also the affordable price will affect the quantity demanded of a good; in the model of Chen and Chen, the consumers' affordability was not discussed. Hence, this paper wants to modify the dynamic demand function while considering the consumers' affordability. The modified dynamic market demand function can provide a more precise reference for scholars or firms to do further research.
關聯:
Journal of Statistics and Management Systems vol. 7, no. 3 pp.457-470
