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To develop a framework for systematically defining the relevant market for intermediate goods that incorporates downstream market conditions.

We combine the well-established “Hicks-Marshall” conditions of derived demand for inputs with “critical loss/critical elasticity of demand” to yield insights into the definition of antitrust markets for intermediate goods and the competitive effects from a merger.

We show that examining “Hicks-Marshall” conditions can provide a more rigorous framework for analyzing relevant markets for intermediate goods. We also show that solely examining demand substitution possibilities for direct customers of an input can lead to an incorrect market definition.

Our framework may be difficult to apply in circumstances when several different downstream products use the input being examined and each of those downstream products has a different elasticity of demand.

We illustrate how reasonable ranges for key parameters relating to the ability of firms to substitute to other inputs and to adjust to downstream market conditions will often be sufficient to define antitrust markets for intermediate goods in practice.

Previous antitrust analysis has not systematically analyzed the impact of downstream market conditions in assessing market definition for intermediate goods. The framework we develop will be useful to future researchers attempting to define relevant markets for intermediate goods and evaluating the competitive effects of a merger.

The purpose of this paper is to investigate structural changes in the elasticity of demand for wine in the Province of Ontario and in Canada as a whole. It will provide academic researchers and practitioners with a better understanding about structural changes in the levels of wine demand elasticities over time. It will also help the relevant governments and wine business establishments in developing taxation policy and business decisions.

The Kalman filter method, in conjunction with the Chow test, is applied to investigate structural changes in the elasticity of demand for wine. The Chow test is used for primary investigations of structural changes in the elasticity of demand for wine over time, whereas the Kalman filter method provides information about the behavior of the elasticity coefficients over time.

The Chow test reveals that structural changes in wine demand for Ontario are more pronounced than those for Canada as a whole. The Kalman filter results indicate that increased (decreased) government taxation could be an effective tool for discouraging (encouraging) consumption of wine. The analysis of own‐price elasticity suggests that the effects of increased government taxation on wine consumption be totally unexpected. Cross‐price elasticity coefficients change their signs over time, suggesting that some of the goods that are considered to be complements may become substitutes. Income and unemployment levels have different effects on wine consumption in Ontario and in Canada as a whole.

There may be variation in results by wine color (red or white), country of origin (imported or domestic), or price (premium or non‐premium).

Understanding changes in the elasticity of demand structure for wine over time would help policy makers at the provincial and federal levels come up with effective tools for controlling consumption of wine over time, including their taxation policies. For the wine business establishments, the information on consumer response is important for pricing purposes.

The Kalman filter has not previously been used to examine structural changes in the demand for wine in Canada.

Oil market VAR models have become the standard tool for understanding the evolution of the real price of oil and its impact on the macro economy. As this literature has expanded at a rapid pace, it has become increasingly difficult for mainstream economists to understand the differences between alternative oil market models, let alone the basis for the sometimes divergent conclusions reached in the literature. The purpose of this survey is to provide a guide to this literature. Our focus is on the econometric foundations of the analysis of oil market models with special attention to the identifying assumptions and methods of inference.

The purpose of this paper is to use demand behavior estimation to find the sources of price variability among resort hotels at different Spanish destinations.

This paper estimates online demand functions during high season for seven four-star resort hotels located at different Spanish destinations. Different price elasticity values are compared, and different factors affecting price elasticity are analyzed.

The main findings indicate that most of the high season periods display elastic demands, but factors such as a central location at a resort, recent refurbishments, the availability of additional facilities/services and a hotel targeted at the couples and/or half-board segments make the demand more inelastic; the Tenerife hotels had the most price-elastic demand; during the closest booking periods to the date of stay, the demand is usually more elastic; and a higher number of local competitors pushes down hotel prices.

This paper highlights the managerial implications of focusing on more profitable demand segments for hoteliers. This is especially useful for the development of revenue management software aimed at improving forecasts.

该论文评估了位于西班牙不同目的地的七家四星级度假酒店在旺季期间的在线需求函数。比较不同的价格弹性值, 分析影响价格弹性的不同因素。

本文的目的是使用需求行为估计来找出西班牙不同目的地度假酒店价格变化的来源。

主要调查结果表明：（1）大多数旺季期间的需求弹性, 但诸如度假村的中心位置、最近的翻新、额外设施/服务的可用性以及针对夫妻和/的酒店等因素或半食宿使需求更加缺乏弹性; (2) 特内里费酒店的价格弹性需求最大; (3) 在离入住日期最近的预订期间, 需求通常更具弹性; (4) 更多的本地竞争者压低了酒店价格。

本论文强调了酒店经营者应关注更有利可图的需求细分市场的管理意义。研究发现对于开发旨在改进预测的收益管理软件特别有价值。

This paper aims to estimate electricity demand functions in Japan’s residential sector.

The authors use a partial adjustment model and empirically analyze regional residential electricity demand by using data on 47 Japanese prefectures.

The results reveal that the price elasticity of residential electricity demand during the analytical period (1990-2010) is remarkably different among prefectures, depending on the magnitude of floor space per household. In addition, this study finds that price elasticity is high compared with income elasticity, implying that residential electricity demand changes with rates. Furthermore, an analysis of factors influencing electricity demand in the residential sector shows that increasing electricity demand growth in each region can be attributable mainly to declining electricity rates and increasing number of households.

These results suggest that monitoring the electricity rates and the number of households is important for forecasting future residential electricity demand at region.

The study considers the impact of the number of households on overall electricity demand and identifies other factors contributing to growth in residential electricity demand. The findings can be used to derive projections for future electricity demand.

The demand for alcohol is a well‐researched topic, yet the published literature regarding consumer responses to changes in the price of alcohol includes many conflicting and inconsistent results. This paper seeks to present an analysis of known own‐price elasticity estimates, and to attempt to understand why reported results differ.

The approach taken to analysing the data is the meta‐regression approach. Specifically, the meta‐regression considers 150 beers, spirits, and wines, own price elasticity point estimates, which have been drawn from studies that consider demand responses to changes in the price of alcohol in 18 different countries.

The results of the empirical work reported in this paper suggest that the year of the study, the length of study, the per capita level of alcohol consumption, and the relative ethanol share of a beverage are important factors when explaining variations in consumer demand responses to changes in the price of alcohol. Interestingly, the study also suggests that country‐specific and beverage‐specific effects are not important.

The paper is valuable as it uses the meta‐regression framework to control for study design characteristics and, once these characteristics are controlled for, it becomes possible to identify the underlying trend in the demand for alcohol. Specifically, the trend was shown to be one where the demand for alcoholic beverages became increasingly inelastic up to 1969 and decreasingly inelastic thereafter.

This paper presents a simple alternative measure for the arc elasticity of demand that comes naturally and possesses some attractive properties. In particular, it equals the point demand elasticity at some point inside the interval, thus leading to the exact estimations of demand elasticity when this is constant. It also yields narrower values that Dalton’s, Lerner’s and Allen’s widely used measures, and its relationships with the arc revenue elasticities keep exact analogy with those established for the point elasticity case.

This paper aims to identify the income and price elasticities of demand for residential electricity in Latin America and the Caribbean (LAC) and to verify their main determinants.

Meta-analysis and meta-regression methods were applied. After collecting and filtering journal articles, the authors obtained a sample composed of 76 studies covering 1979–2020.

The results show that the LAC's income elasticity is approximately 0.20 and 0.92 for the short and long term, respectively. The LAC's price elasticity is approximately −0.37 and −0.46 for the short and long term, respectively. Furthermore, the estimates are affected by the data structure, the estimation method used and the sampling period.

The authors close a gap in the literature by analyzing the price and income elasticities of demand through meta-analysis and meta-regression.

A simultaneous equation model is used to estimate export demand and supply functions for US soybeans. Price, income, exchange rate and other effects on exports to four world regions are estimated. Inclusion of export supply relationships have very significant implications for estimated price‐, income‐, and exchange‐rate elasticities of export demand. Results fail to support the usual empirical assumption of infinite supply price elasticity for soybeans.