The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jan, 1956, Volume 24, Issue 1
https://doi.org/0012-9682(195601)24:1<47:ATODWV>2.0.CO;2-X
p. 47-58
R. L. Basmann
Existing theory of consumer demand does not contain a body of theorems purporting to explain the consumption behavior of individuals when their preferences are changed, either autonomously or by advertising and other form of selling effort. The objective of this paper is to present a theory of consumer demand with variable preferences. The assumption that the individual consumer has a unique ordinal utility index function is replaced by the assumption that he has a family of ordinal utility functions; advertising expenditures by the sellers of commodities are assumed to determine which one of these ordinal utility functions is to be maximized. From these assumptions are derived a number of theoretical relations which measurements defining advertising elasticities of demand must satisfy. The relations involving shifts in demand and advertising elasticities of demand are shown to be analogues of the theorems of consumer demand under fixed preferences. For example, a theorem corresponding to the well-known Leontief-Hicks theorem on aggregate commodities has been worked out, thus showing that, under certain advertising conditions, a group to commodities may be treated as a single good.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
