Authors
Margaret Irish
Publication date
1980/5/1
Journal
Oxford Bulletin of Economics and Statistics
Volume
42
Issue
2
Pages
65-78
Publisher
Blackwell Publishing Ltd
Description
The article introduces a model of quality choice among consumers. Prices are defined to be functionally dependent on quality. Otherwise it is only in the definition of goods, which requires the extension of the choice variables to qualities, that this model departs from the standard form, and all the familiar results of demand theory have close analogues in this formulation. Quality is a tantalizing concept but the term is used here to mean all the defining properties excluding the quantity of a good. One approach to the problem of quality that has been used in demand studies, is to use the price paid as a proxy for quality. A common theme is to define the units of measurement for a good in such a way that a higher quality is treated simply as a greater quantity of a standard quality so that a change in quality is just a'repackaging'and equivalent to a price change. This is conceptually limited and the hypothesis has received …
Total citations
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Scholar articles
M Irish - Oxford Bulletin of Economics & Statistics, 1980