Market Substitution Models and Economic Parameters

Spinrad, B.I. (1980). Market Substitution Models and Economic Parameters. IIASA Research Report. IIASA, Laxenburg, Austria: RR-80-028

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Peterka's model for market penetration rests on pricing assumptions used by centrally planned economies and, on this basis, is not applicable in market economies. It is also a strategic principle rather than a strictly deterministic model, since less favored, as well as more favored, technologies continue to be adopted. Using related strategic principles, this paper explores several models that might be usable in market economies. Test application of models to a synthetic problem simulating market substitution in the electric utility industry favors the "price" model. In this model, the economic attractiveness of a technology is proportional to the inverse of the price that would have to be charged for a product.

Item Type: Monograph (IIASA Research Report)
Research Programs: Energy Program (ENP)
Depositing User: IIASA Import
Date Deposited: 15 Jan 2016 01:47
Last Modified: 27 Aug 2021 17:09

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