Whether demanders or suppliers initiate price changes, individuals acting entrepreneurially eventually do reveal new information, their own perceptions of the condition of the market, whether they want this to happen or not.
In Figure 7, each individual demander is purchasing only [qs.
With blanket licenses, the demander will pick the song "closest" to her desired product once she realizes what that product is.
With no marginal fee for the use of a song, the demander will choose the song closest to X.
The charge for the blanket license will therefore be the expected travel costs to the demander without a license from a particular PRO minus the expected travel costs to the demander with that license.
Assume the demander finds herself in a segment of length A/N, A [less than or equal to] N, A and N are positive integers.
The point of view of the demanders is an important part of all market structuring criteria, both at the opinion level and at the behaviour level.
From the point of view of the demanders, products belonging to the same submarket are very easily substitutable, whereas the substitutability of products belonging to different submarkets is low.
The demanders of the product which is no longer available on the market tend to purchase another product belonging to the same submarket as a substitute.
It is computed as the sum of the producer and consumer surplus (producer surplus is the revenue to the auctioneer) resulting from the allocation process divided by the sum of the producer and consumer surplus which would be realized if the demanders with the K highest valuations receive the K units.
In previous studies, in single-unit demand environments, the English clock auction tends to generate the competitive equilibrium outcome, which occurs if all demanders use their dominant strategy.
Our two-unit demanders behaved like two separate single-unit demanders.