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The conventional derived demand model is frequently inadequate in meeting some of the major purposes of empirical price analysis. This paper gives examples of the type of empirical problems which cause concern, discusses conventional solutions that are frequently employed, and examines other researchers attempts to develop alternative specifications. It suggests that for a large body of products which are sold through chain supermarkets there is a means by which the conventional derived demand model can be supplemented and extended in its usefulness to decision makers.


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