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Linear demand functions in theory and practice
Authors:Jeffrey T LaFrance
Institution:Department of Agricultural Economics and Economics, Montana State University, Bozeman, Montana 59717 USA
Abstract:Integrability conditions for an incomplete system of linear demand functions are considered. The parameter restrictions consistent with integrability are identified, and the structure of the conditional preference map is obtained. It is found that the conditional preferences for a set of linear demand functions are either quadratic or Leontief from a translated origin. Welfare analysis with linear demand models is also considered.
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