Empirical Economics

, Volume 3, Issue 2, pp 123–134 | Cite as

A multi-lognormal demand model for oligopolistic markets

  • C. Michelini


The demand model discussed in this paper has a sigmoid shape and its independent variables are log transformations of market prices instead of incomes as is more customary. The essential element of this model is a psychological variable, the “tolerance price”, which we may loosely define as that price level in correspondence to which the consumer refrains from buying the commodity in question. The ratio between this psychological variable and market prices determines actual demand. An empirical application to an oligopolistic market is successfully tried out.


Economic Theory Market Price Essential Element Price Level Psychological Variable 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Aitchison, J., andJ.A.C. Brown: A Synthesis of Engel Curve Theory. Rev. Econ. Stud.22, 1954, 35–46.Google Scholar
  2. -: The Lognormal Distribution. Cambridge 1963.Google Scholar
  3. Amemiya, T.: Regression Analysis when the Dependent Variable is Truncated Normal. Econometrica41, 1973, 997–1016.Google Scholar
  4. Brown, J.A.C.: Economics, Nutrition, and Family Budgets. Proc. Nutr. Soc.14, 1955, 63–70.Google Scholar
  5. Brown, J.A.C., andA. Deaton: Surveys in Applied Economics: Models of Consumer Behaviour. Economic Jour.82, 1972, 1145–1236.Google Scholar
  6. Cramer, J.S.: Empirical Econometrics. Amsterdam 1973, 40–45.Google Scholar
  7. F.A.O.: World Demand for Paper to 1975. Roma 1961.Google Scholar
  8. Fisher, R.A.: Contributions to Mathematical Statistics. New York 1950, p. 708.Google Scholar
  9. Green, H.A.J.: Consumer Theory. Harmondsworth 1971, p. 63.Google Scholar
  10. Kale, B.K.: On the Solution of Likelihood Equations by Iterative Processes. The Multiparametric Case. Biometrika49, 1962, 479–486.Google Scholar
  11. Kendall, M.G., andA. Stuart: The Advanced Theory of Statistics. Vol. III. London 1966, 264–73.Google Scholar
  12. —: The Advanced Theory of Statistics. Vol. II. London 1967, p. 48.Google Scholar
  13. Michelini, C.: La domanda familiare di zucchero in Italia. Statistica28, 1968, 187–222.Google Scholar
  14. —: Convergence Pattern of the Scoring Method in Estimating Parameters of a Log-Normal Function. J. Am. Stat. Ass.67, 1972, 319–323.Google Scholar
  15. Stene, J.: A Property of Fisher's Scoring Method for Maximum Likelihood Estimators. Paper presented at the European Meeting on Statistics, Econometric and Management Science. Amsterdam 1968.Google Scholar

Copyright information

© Physica-Verlag 1978

Authors and Affiliations

  • C. Michelini
    • 1
  1. 1.Istituto Statistico-Matematico, Facoltà di Economia e CommercioUniversità degli Studi di ModenaItalia

Personalised recommendations