This article explores the applicability of a model of migration from the human geography literature as a unifying, theoretical framework for understanding consumers’... Academic Article uri icon

abstract

  • The authors derive an expression for the price elasticity of demand in the presence of reference price effects that includes a component resulting from the presence of gains and losses in consumer evaluations. The effect of reference price is most noticeable immediately after a price change, before consumers have had time to adjust their reference price. As a result, immediate-term price elasticity...

publication date

  • January 1, 2005