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The utility foundation of the Cobb-Douglas demand function is known for the one and two attributes cases. It is unknown in the case of three or more attributes, a regular need for modellers. In this article, we contribute by founding from a programme of (quasi-linear) utility maximization a Cobb-Douglas demand function of an arbitrary large number of attributes. We also contribute by providing simple formulas for consumer surplus and social welfare. By generalizing previous results, our research offers a normative foundation to a larger class of demand functions. [ABSTRACT FROM AUTHOR]

In this paper, we explore the importance of accounting for climate when determining the impact of weather on product sales. Using a France-wide scanner panel dataset provided by our industry partner, we show that if climate is not accounted for, product categories may be misclassified as being weather sensitive when they are not, and vice versa. This is motivated by previous research and industry reports that suggest a relationship between weather and retail sales. However, these studies often fail to distinguish between weather and climate, leading to inaccurate conclusions. Our results highlight the need to control for climate in order to accurately assess the effects of weather on retail sales. We use ordinary least squares regression to estimate the relationship between temperature and sales for 29 different product categories. The regression models control for various factors, including shelf space allocation, week of observation, quantity purchased, promotion, store brand, store surface area, store competition, and consumer behavior measures. We find that when accounting for climate, only a subset of the product categories is sensitive to weather. Additionally, we show that climate can be approximated using a week index, eliminating the need for additional data collection and approximation efforts. Our findings have implications for both researchers and practitioners. Researchers should be aware of the importance of accounting for climate when studying the impact of weather on retail sales, as failing to do so may lead to erroneous conclusions. Practitioners can use our results to inform their marketing and sales strategies, taking into account the weather sensitivity of different product categories and the role of climate in shaping consumer behavior. Overall, our study emphasizes the need to consider climate when determining the impact of weather on retail sales, and provides practical insights for retailers and economists. [ABSTRACT FROM AUTHOR]

This paper presents an inventory management policy for a retailer offering a layaway programme. Layaway is a service provided by retailers that allows budget constrained consumers who have sufficiently high valuations to pay for a product in several instalments rather than at once and obtain the product that has been reserved for them at the end of the payment period. If a consumer defaults on payments, then the reserved item is released back into store inventory. In this paper, we first determine the retailer's optimal order decisions when layaway is offered. We find that the order quantity under a layaway programme decreases with the likelihood of consumers not finishing their layaway plans and that it is not always profitable for a retailer to offer a layaway programme. We then identify the market conditions under which the retailer would benefit from a layaway programme. Lastly, we consider an extension to capture the influence of the timing of consumer defaults. [ABSTRACT FROM AUTHOR]