One arranges different effects of the price of a property into the economics and consumer sociology on the consumption (therefore it also: Nachfragerverhalten). The different effects are not to be understood excluding. The demand curve is regarded, partially by certain groups of the society. The terms emerge frequently in the market study, public opinion poll and trend research.

The price effect faces the income effect. Both effects can be regarded by the Slutsky dismantling separately.

One differentiates:

• Substitution effect: The always clear substitution effect shows the effects of a price adjustment with hypothetically real income constantly held (or use).

• Volume daring on effect or effect: The music car effect (also volume daring on effect or effect) is a price effect, which describes that humans (e.g. consumers) align their behavior at the surrounding field noticed by them.

• see network effect: It describes that the use at a standard or network grows starting from a certain critical mass in relation to the user number exponentially and grows in the consequence by this strongly growing use also the number of the users fast.

• Snob effect: The effect develops whenever the consumers give to the goods only starting from a certain price attention and additionally assume the property for a broad layer is not acquired by consumers (English: snob VALUE). The price is rather unimportant; the behavior of other consumers is crucial.

• Vebleneffekt/Geltungskonsum/Prestigeeffekt: The Vebleneffekt is a price effect, which explains, why consumers consume a property straight because of its high price. That is, a certain property cannot due to its small price when exclusively enough are regarded.

• Sour cucumber problem (Lemons problem): Since buyers can often judge a property only with difficulty, they will pay less on the average than them would pay, if there were only good goods - they adjust themselves to get a "“sour cucumber"”. Thus slowly the offerers with high quality and high price are displaced, because nobody buys with them. More becomes proportionate "“sour cucumbers"”.

• Giffen paradox (also income effect): Households, which live at the subsistence level, reacted to an increase of the bread price with a rising demand for bread. To justify this leaves itself with the fact that a rising price for a basic food lets available incomes sink with these households for other food so strongly that it without these to do to have and more bread to buy have, in order to place their nourishing basis surely.

see also: Price elasticity, income effect

Articles in category "Price effect"

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