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Product locations and prices have been determined through a spatial model under conditions of elastic consumer demand with a finite reservation price. Conditions wherein a two-stage equilibrium leads to maximal product differentiation with full market covering have also been derived. Results confirm that firms relax price competition by maximizing product differentiation when the price reservation is high.

An assessment of the housing demand functions for the Bombay Metropolitan Region has been established using a two-step econometric analysis. Regression results gathered from one of the two steps showed that the hedonic price index for different regions in Bombay is ancillary to housing, neighborhood and expenditure characteristics. It was also established that income elasticities for owners and tenants range between 0.33 and 0.38 respectively, while price elasticities for the two average about -0.21 and -0.75 correspondingly. Such figures clearly support the idea that housing demand is inelastic as regards to income and prices.

A food demand system is proposed based on demand for energy, variety, and tastes of foods. By specifying utility as an explicit function of these characteristics, the entire matrix of demand elasticities can be derived for n foods and one non-food from prior specification of just four elasticities, while avoiding any assumption of separability between foods. This framework can explain why poorest groups often are most price-responsive, but also can account for highest price-responsiveness by middle income groups. The system is applied to published food consumption data for urban and rural populations in Pakistan. Elasticities are compared with those obtained in a published Pakistan study applying an almost ideal demand system (AIDS). Keywords: Price-response; Food characteristics; Hedonic prices; Food demand system; Calorie demand

We study the price elasticity of demand for the common stock of an individual corporation. Despite the prevalence of assumptions that demand is perfectly elastic, there is little if any direct evidence in the literature to either support or reject that contention. Consistent with the notion of finite price elasticities, we find that the announcement of primary stock offerings by regulated firms depresses their stock prices and little if any evidence that this decline is the result of adverse information about future cash flows. Attempts to relate offer announcement effects directly to possible determinants of price elasticities, however, are inconclusive. (Reprinted by permission of the publisher.)

A simple alternative measure for the arc elasticity of demand, which has some attractive features, is introduced. The alternative definition equals the point demand elasticity at some point inside the interval, resulting in the exact estimations of demand elasticity when this is constant. It satisfies the three a priori desirable conditions imposed by Allen, as well as two more conditions later added to the former. It likewise yields narrower values than the widely used measures of Dalton, Lerner and Allen.