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Topic: Consumer theory

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In the News (Tue 21 Nov 17)

  Consumer Culture Theory Conference
Consumer Culture Theory (CCT) is an interdisciplinary field that comprises macro, interpretive, and critical approaches to and perspectives of consumer behavior.
The number of social scientists outside of marketing that conducts CCT research is large and growing.
The conference meets on the campus of the University of Notre Dame, adjacent to South Bend, Indiana, 90 miles east of Chicago.
www.nd.edu /~markdept/020812/conference   (162 words)

  Consumer theory - Wikipedia, the free encyclopedia
The consumer will choose the indifference curve with the highest utility that is within the budget constraint.
The theory of consumer choice examines the trade-offs and decisions people make in their role as consumers as prices and their income changes.
Consumer Theory: The Neoclassical Model and Its Opposite Alternative, by Valentino Piana.
en.wikipedia.org /wiki/Consumer_theory   (723 words)

 Indifference curve - Wikipedia, the free encyclopedia
The theory of indifference curves was developed by Francis Ysidro Edgeworth, Vilfredo Pareto and others in the first part of the 20th century.
Utility theory posits that when agents can rank all pairs of consumption bundles by order of preference (and this ranking is a transitive relation) then there is a utility function.
Consumer theory uses indifference curves and budget constraints to produce consumer demand curves.
en.wikipedia.org /wiki/Indifference_curve   (1166 words)

 [No title]
Consumer surplus is the difference between what a consumer or consumers is willing to pay for a good and what they have to pay.
What consumers are willing to pay for each unit of a commodity is subtracted from what they have to pay for each unity of the commodity (its price) and the resulting amount is the consumer's surplus or gain.
What all consumers in the market are willing to pay for each unit of a commodity subtracted from what they have to pay for each unit (its price) and the resulting amount is the consumers' surplus or gain.
lamar.colostate.edu /~alex/ec102/lectures/s102lec8.htm   (778 words)

 [No title]
The theory of consumer in mainstream economics is based on the optimization of consumer utility function and on which in turn is premised the construction of consumer demand function.
Consumer preferences for goods and services cannot be static or datum in such a framework, as is otherwise the case in neoclassical economic theory.
The theory of consumer behaviour in Islamic political economy governed by the embryonic Shuratic Process and its analytical methodology is polar to the scientific niceties of neoclassicism and its emergent methods and concepts, theories and institutions in the West today.
faculty.uccb.ns.ca /mchoudhu/chapter16.html   (3349 words)

 Consumer theory: a free software for understanding your textbook
The standard textbook model of consumer is an outstanding example of the neoclassical paradigm in economics: a hyper-rational agent maximises something by choosing an "optimal" bundle of things.
The red point is the rational consumer's choice (the chosen bundle), since it maximises utility, given the budget constraint.
Consumers in the model follows alternatively three rules of behaviour.
www.economicswebinstitute.org /essays/consumertheory.htm   (1948 words)

 Towards An Understanding Of The Global Market System:
A New Perspective For Economics
Economic theory is an edifice of models built on this fundamental assumption, models which enable the economists either to make statements about the development of the parameters of the economic system or to prescribe the optimal choices to be taken.
In his theoretical framework the consumer is not considered to be a passive maximizer of the utility of market goods; instead, he/she proceeds from the idea of private households as producing units which combine market goods and (non-working) time to produce so-called „basic commodities”—commodities to be consumed directly.
All this would not be denied by the critics of the liberal demand theory; in essence, their point had always been that the assumption of rational consumer behavior as the foundation stone and justification of the laissez-faire ideology was false.
theoryandscience.icaap.org /content/vol001.001/03rolf.html   (5248 words)

 Shatibi's Objectives of Shari'ah and Some Implications for Consumer Theory   (Site not responding. Last check: 2007-10-26)
It is true that a secular consumer also has altruistic consideration and may like to spend a part of his income on charities, but such charities are part of the first basket as the consumer finds utility in such charities in the same way as he finds utility in other items of the basket.
For example, if a consumer is fulfilling tahsiniyyah relating to his nafs (life) while a person in his neighborhood is dying of starvation, the fulfillment tahsiniyyah will fall into the category of israf which he is not allowed to indulge in.
For example, consumers may like to eat to their fill while their neighbors are starving, or they may like to earn more income by hoarding the goods, hence causing harm to others and so on.
islamic-world.net /economics/consumer_theory.htm   (10025 words)

 Consumer Theory
Two bundles are said to be indifferent (for a particular consumer) if the consumer is equally happy with either bundle.
Consumers will choose the bundle that they can afford that is on the highest possible indifference curve.
Since consumers try to maximize happiness (get on highest possible indifference curve), you can draw the picture so that the consumers will (or will not) decide to participate in the program.
are.berkeley.edu /~peter/EnvEcon/consumer.htm   (529 words)

 Consumer Theory   (Site not responding. Last check: 2007-10-26)
The standard calculus approach to consumer theory involves using Lagrangian multipliers.
Since our objective is only to use one variable calculus, we shall solve the two variable consumer problem by substitution to reduce the number of variables to one.
Each consumer is assumed to have a utility function which represents his or her tastes concerning alternative combinations of goods,
www.eco.utexas.edu /faculty/Norman/05/consumer.html   (677 words)

 Productivity, Profit and Consumer Welfare: Three Different Measures of Information Technology's Value
While the theory of production predicts that lower prices for IT will create benefits in the form of lower production costs for a given level of output, it is silent on the question of whether firms will gain competitive advantage and therefore higher profits or stock values.
The consumer surplus approach focuses on whether the benefits are passed on to consumers.
This is consistent with hypothesis H3 and is proportional to the consumer surplus calculation for the economy as a whole performed by Brynjolfsson (1993b).
ccs.mit.edu /papers/CCSWP190.html   (10171 words)

 Fenn: literatuur papers & abstracts
It discusses the work and life of Hazel Kyrk, a Chicago-economist who is said to have established Chicago as the premier university for the study of family and consumer economics, but whose work nevertheless appears to have been forgotten by those working in the discipline.
The Theory of Moral Sentiments (1759) by Adam Smith has recently been rediscovered as a source of information about the moral contents of the Wealth of Nations, and broader of the market economy.
This paper addresses the gender content of the Theory of Moral Sentiments and argues that the hierarchical and asymmetrical perceptions of masculinity and femininity that is used and constructed in this text, is fundamental to Smith’s perception of identity and moral behavior.
www.fen-netherlands.nl /ned/literatuur/papers.php   (1997 words)

 [No title]   (Site not responding. Last check: 2007-10-26)
In particular, such a consumer is not necessarily "optimizing" and may be "satisficing" in the sense of March and Simon (1958).
It turns out that if the "aspiration level" of the consumer is relatively low, (s)he tends to be satisfied and may choose a "corner" solution, which is not necessarily "utility maximizing" in the classical sense.
If, however, the aspiration level is relatively high, the consumer keeps switching among the products, and their relative frequencies converge to an interior point in the bundles space, as suggested by the classical theory under the assumption of convex preferences.
faculty.fuqua.duke.edu /daweb/wp930806.htm   (467 words)

 Budget constraint - Wikipedia, the free encyclopedia
A Budget Constraint represents the combinations of goods and services that a consumer can purchase given current prices and his income.
Consumer Theory uses the concepts of budget constraint and preferences to analyze consumer choices.
When the consumer spends all his income we have
en.wikipedia.org /wiki/Budget_constraint   (254 words)

 The Social Significance of Consumption: James Duesenberry's Contribution to Consumer Theory - Questia Online ...   (Site not responding. Last check: 2007-10-26)
Late nineteenth century economists gave little consideration to claims that consumer demand could often be determined by the social needs and aspirations of individuals, and this reluctance to discuss the social dimensions of consumption became a cause for concern for some.
Simon Patten [1889] and Thorstein Veblen [1899] were early critics of a theory of consumption that did not seem able to accommodate social and psychological dimensions of consumer preference formation, and this dissent continued into the early years of the twentieth century [Veblen 1909; Downey 1910; Mitchell 1910; Clark 1918; Knight 1925a, 1925b].
However, their case was usually rejected on the grounds that they had not been able to present an alternative theory of consumer behavior expressed in purely economic terms--a theory that could, where necessary, be supported by persuasive empirical evidence that social factors could and did play a considerable part in determining patterns of consumer demand.
www.questia.com /PM.qst?a=o&d=5001090477   (620 words)

 EconPort - Handbook - Consumer theory - Choice and Preferences
A set of alternatives, such as those in figure 1, restricts a consumer's set of possible choices.
The previous section described the consumer's budget, which creates a set of alternatives from which a choice is made.
A consumer, presented with two alternatives, should be able to decide which is preferred, or if they are equally good.
www.econport.org /econport/request?page=man_consumer_choice   (270 words)

 Consumer theory - Wikipedia, the free encyclopedia   (Site not responding. Last check: 2007-10-26)
Consumer theory relates preferences, indifference curves and budget constraints to consumer demand curves.
More usefully, this can now be used to predict the effect of various shifts in the constraint.
Increasing the income will shift the budget constraint right since more of both can be bought, and decreasing income will shift it left.
www.northolmsted.us /project/wikipedia/index.php/Income_effect   (728 words)

 Theory of Consumer Demand
Weber's theory of the location of the firm
Theory of consumer demand is the analysis of demand with regard to consumer behavior and rationale when changes occur in variable factors such as price, income, substitute goods.
Choice and revealed preference are two important factors affecting consumer demand.
www.economyprofessor.com /economictheories/theory-of-consumer-demand.php   (89 words)

 SSRN-Economic Efficiency and Consumer Choice Theory in Nutritional Labeling by Michael McCann
As more Americans consume fast food each year, more Americans are contracting serious diseases related to obesity.
By applying consumer choice theory to fast food consumption, Part V proposes a new theoretical framework that could both conceive a limited common law duty to warn of the dangers of overconsumption and, by immunizing a food seller from tort liability, reward compliance with such a duty.
Accordingly, regulatory and judicial alternatives may be combined to most efficiently curtail the effects of fast food overconsumption on public health and tax-funded expenditures, while simultaneously removing from the American tort system a legally implausible, though factually credible, claim.
papers.ssrn.com /sol3/papers.cfm?abstract_id=567764   (834 words)

 Consumer Demand Theory
A budget constraint shows the consumer's purchase opportunities as every combination of two goods that can be bought at given prices using a given amount of income.
Utility is at a maximum when increasing wheat by one unit, and correspondingly decreasing rice by one unit, leaves the consumer just as well off as the reverse operation (wheat down one unit, rice up one unit).
The theory of consumer demand says that utility is maximized given the budget constraint.
instruct1.cit.cornell.edu /courses/econ101-dl/lecture-demand.html   (784 words)

 Consumer Theory in Economics   (Site not responding. Last check: 2007-10-26)
Economists have worked out a theory of the consumer which appears to be a general theory explaining what people buy.
The economic model of the consumer was originally formulated in terms of the concept of a utility function and that formulation is still valid.
A consumer wants to get the greatest net benefit; i.e., the consumer would choose a level of consumption of x such that the net benefit is a maximum.
www.sjsu.edu /faculty/watkins/constheo.htm   (813 words)

 The theory of consumer choice
the consumer is indifferent between bundles on a given curve
Consumer is on highest indifference curve that is affordable
consumer is willing to trade one good for another at the same rate as she can trade one good for another
www.usu.edu /hunnicut/2010/week15.html   (409 words)

The consumer can choose any point on or below the budget constraint line BC.
I3 has all the points outside of their budget constraint so the best that they can do is I2.
If the price of Y increases from where it is at BC2, the budget constraint will shift to BC1.
www.colombialink.com /01_INDEX/index_finanzas_eng/consumer_theory.html   (591 words)

 Consumer involvement theory for advertising and marketing
On the consumer side, high involvement / rational purchases tend to be linked to high cost.
That said, high involvement consumer purchases can vary significantly on the rational / emotional scale from individual to individual.
Smith, a car is strictly a way to get to work, and her selection is based on fuel economy and reliability.
www.adcracker.com /involvement   (490 words)

 Case-Based Consumer Theory
We assume that the consumer is choosing among products, rather than bundles, and that (s)he is a "case-based decision maker." In particular, such a consumer is not necessarily "optimizing" and may be "satisficing' in the sense of March and Simon (1958).
The aggregation of choices among products implicitly defines a choice of a "bundle." It turns out that if the "aspiration level" of the consumer is relatively low, (s)he tends to be satisficed and may choose a "corner" solution, which is not necessarily "utility Maximizing" in the classical sense.
It follows that the consumer's reaction to price changes is "immediate," and does not require to (implicitly) solve the new optimization problem.
ideas.repec.org /p/nwu/cmsems/1025.html   (713 words)

 [No title]
Topics to be covered include the theory of consumer behavior (consumer choice, individual & market demand), the theory of the firm (production & costs in short/long run), market structures, game theory, and the economics of information.
The goal is not only to study microeconomic theory but also to facilitate your understanding by applying this theory to economic problems.
The goals are to enhance your ability to identify the role of economics in society, to apply the economic theory discussed in class, and to improve your critical thinking and writing skills.
www.davidson.edu /academic/economics/eco202_syl.doc   (1063 words)

 Consumer Theory I   (Site not responding. Last check: 2007-10-26)
An introduction to the basic concepts underlying the behaviour of the consumer.
We shall look at consumer preferences and the axioms governing these preferences, thereby examining the consumer's indifference curves.
Given these and the consumer's budget, it is possible to analyse the consumer's demand for various goods or products.
www.amherst.edu /~ojboard/micro1/micro1_1.html   (210 words)

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