Summary
We discuss the treatment of innovation in the economic approach to demand analysis. After comparing the “new approach to consumer theory” developed by Lancaster to the “classical” approach, the issue of how to measure innovation in empirical models is considered. In particular, we argue that innovation indexes can be introduced in empirical specifications of the classical model: they can be different depending on the stage of expenditure allocation considered. Finally, an Almost Ideal demand system extended to innovation is applied to verify the impact of the additional content of “convenience” services on food demand in Italy.
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© 1996 Physica-Verlag Heidelberg
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Moro, D., Boccaletti, S., Sckokai, P. (1996). Innovation and Consumers’ Choice. In: Galizzi, G., Venturini, L. (eds) Economics of Innovation: The Case of Food Industry. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-642-50001-5_2
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DOI: https://doi.org/10.1007/978-3-642-50001-5_2
Publisher Name: Physica-Verlag HD
Print ISBN: 978-3-7908-0911-4
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