The demand function of a product is constructed as a bivariate normal distribution function with the consumer willing-to-pay price and the unit transaction cost as variables. Such a bivariate distributed demand function is much different from those of traditional demand functions, and can catch more practical situations. This study focuses on the reasoning process in constructing such a bivariate distributed demand function and its characteristics, as well as its feasible applications.
Relation:
International Journal of Information and Management Sciences 19:717-728
