More on introducing demand elasticity

1978 ◽  
Vol 6 (2) ◽  
pp. 90-91 ◽  
Author(s):  
Alan J. Donziger
Keyword(s):  
Author(s):  
Chunyu Liu ◽  
Fengrui Mu ◽  
Weilong Zhang

Background: In recent era of technology, the traditional Ant Colony Algorithm (ACO) is insufficient in solving the problem of network congestion and load balance, and network utilization. Methods: This paper proposes an improved ant colony algorithm, which considers the price factor based on the theory of elasticity of demand. The price factor is denominated in the impact on the network load which means indirect control of network load, congestion or auxiliary solution to calculate the idle resources caused by the low network utilization and reduced profits. Results: Experimental results show that the improved algorithm can balance the overall network load, extend the life of path by nearly 3 hours, greatly reduce the risk of network paralysis, and increase the profit of the manufacturer by 300 million Yuan. Conclusion: Furthermore, results shows that the improved method has a great application value in improving the network efficiency, balancing network load, prolonging network life and increasing network operating profit.


2021 ◽  
Vol 13 (3) ◽  
pp. 1414
Author(s):  
Mónica Madonado-Devis ◽  
Vicent Almenar-Llongo

In urban water provisioning, prices can improve efficiency, contributing to the achievement of the environmental objective. However, household responses to price changes differ widely based on the household characteristics. Analyses performed at the aggregate level ignore the implications of water demand incentives at the individual household level. A large data sample at the household level enables estimation of econometric models of water demand, capturing the heterogeneity in domestic consumption. This study estimated the domestic water demand in the city of Valencia and its elasticity, along with the demands of its different districts and neighbourhoods (intra-urban scale analysis). Water price structure in Valencia is completely different from that of other Spanish cities: it is a price structure of increasing volume (increasing rate tariffs, IRT). For this estimation, from a microdata panel at the household level, the demand function with average prices for the period 2008–2011 was estimated using panel data techniques including a fixed effect for each neighbourhood. The domestic water demand elasticity at the average price in Valencia was estimated at −0.88 (which is higher than that estimated for other Spanish cities). This value indicates an inelastic demand at the average price of the previous period, which can cause consumers to overestimate the price and react more strongly to changes.


Energy ◽  
2011 ◽  
Vol 36 (2) ◽  
pp. 1332-1339 ◽  
Author(s):  
Maryam Hajati ◽  
Hossein Seifi ◽  
Mohamad Kazem Sheikh-El-Eslami
Keyword(s):  

2021 ◽  
pp. tobaccocontrol-2021-056616
Author(s):  
Ali Chalak ◽  
Rima Nakkash ◽  
Niveen M E Abu-Rmeileh ◽  
Yousef S Khader ◽  
Mohammed Jawad ◽  
...  

BackgroundWaterpipe tobacco smoking rates in the Eastern Mediterranean region are among the highest worldwide, yet little evidence exists on its economics. Estimates of demand elasticities for tobacco products are largely limited to cigarettes. This study aimed to estimate own-price and cross-price elasticities of demand for cigarettes and waterpipe tobacco products in Lebanon, Jordan and Palestine.MethodsA volumetric choice experiment was conducted using nationally representative household surveys. The choice experiment elicited respondents’ stated purchases of eight cigarette and waterpipe tobacco product varieties by hypothetically varying prices. Data were analysed using zero-inflated Poisson models that yielded demand elasticity estimates of cigarette and waterpipe tobacco consumption.ResultsThe study included 1680 participants in Lebanon (50% female), 1925 in Jordan (44.6% female) and 1679 in Palestine (50% female). We found the demand for premium cigarettes to be price elastic (range, −1.0 to −1.2) across all three countries, whereas the demand for discount cigarettes was less elastic than premium cigarettes in Lebanon (−0.6) and Jordan (−0.7) and more elastic in Palestine (−1.2). The demand for premium waterpipe tobacco was highly elastic in Lebanon (−1.9), moderately elastic in Jordan (−0.6) and inelastic in Palestine (0.2). The cross-price elasticity between cigarettes and waterpipe tobacco was near zero, suggesting that the two products are not considered to be close substitutes by consumers.ConclusionsThese results serve as a strong evidence base for developing and implementing fiscal policies for tobacco control in the Eastern Mediterranean region that address cigarettes and waterpipe tobacco products.


2020 ◽  
Vol 57 (5) ◽  
pp. 900-916
Author(s):  
Baojun Jiang ◽  
Tianxin Zou

This article examines how the consumer’s search cost and filtering on a retail platform affect the platform, the third-party sellers, and the consumers. The authors show that, given the platform’s percentage referral fee, a lower search cost can either increase or decrease the platform’s profit. By contrast, if the platform optimally adjusts its referral fee, a lower search cost will increase the platform’s profit. As the consumer’s search cost decreases, if the platform’s demand elasticity increases significantly, the platform should reduce its fee, potentially resulting in an all-win outcome for the platform, the sellers, and the consumers; otherwise, a lower search cost will increase the platform’s optimal fee percentage, potentially leading to higher equilibrium retail prices. Furthermore, the availability of filtering on the platform will in expectation induce consumers to search fewer products but buy products with higher match values, and filtering can either increase or decrease equilibrium retail prices. When filtering reveals only a small amount of the products’ match-value variations, it will benefit the platform, the sellers, and the consumers. This article shows that the effects of filtering and those of a decrease in search cost are qualitatively different.


PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0260393
Author(s):  
Jan Eeckhout ◽  
Christoph Hedtrich

Large cities are more productive and generate more output per person. Using data from the UK on energy demand and waste generation, we show that they are also more energy-efficient. Large cities are therefore greener than small towns. The amount of energy demanded and waste generated per person is decreasing in total output produced, that is, energy demand and waste generation scale sublinearly with output. Our research provides the first direct evidence of green urbanization by calculating the rate at which per capita electricity use and waste decrease with city population. The energy demand elasticity with respect to city output is 83%: as the total output of a city increases by one percent, energy demand increases less than one percent, and the Urban Energy Premium is therefore 17%. The energy premium by source of energy demand is from households (13%), transport (20%), and industry (16%). Similarly, we find that the elasticity of waste generation with respect to city output is 90%. For one percent increase in total city output, there is a less than one percent increase in waste, with an Urban Waste Premium of 10%. Because large cities are energy-efficient ways of generating output, energy efficiency can be improved by encouraging urbanization and thus green living. We perform a counterfactual analysis in a spatial equilibrium model that makes income taxes contingent on city population, which attracts more people to big cities. We find that this pro-urbanization counterfactual not only increases economic output but also lowers energy consumption and waste production in the aggregate.


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