This paper uses an original panel dataset with posted prices and sales to estimate a dynamic demand. We find that consumers become more price sensitive as time to departure nears which is consistent with having lower valuations. This result provides empirical support to a key theoretical...

A.A. Walters developed a traffic theory that is still adopted by many countries to solve congestion. To justify his theory, he claimed that it reflects the supply and demand of traffic. This paper shows that his supply-demand model is unstable and disastrous

The aim of this paper is to propose an analytical framework, wherein the individuals' choice problem is addressed in terms of alternative time‐consuming activities rather than in terms of alternative bundles of goods and services. In particular, the paper reverses Becker's (1965) proposal to...

This paper investigates empirically why Japan’s household savings rate fell in the 1990s. We constructed an economic model consisting of two types of household: unconstrained life-cycle households and liquidity-constrained households. Unconstrained households generally save, but...

A notion of "behavioral heterogeneity" of a finite population of households is modelled. It is shown that the higher the degree of behavioral heterogeneity the less sensitive depends the aggregate consumption expenditure ratio upon prices. As a consequence, behavioral heterogeneity implies a...