Table 1.
Summary of the variables used in the theory described here, along with alternative notations for the same quantities used by other authors
Variable | Meaning | Other notations |
---|---|---|
P | Price, work performed per unit of good received | C |
Q | Consumption | |
R | Revenue, total work performed at a given price point | O |
Q0 | Preferred consumption level when price is negligible | |
Rmax | Maximum work performed to obtain goods at any price | Omax |
Pmax | Price at which maximum work is performed | |
Normalized Pmax, equal to Q0Pmax | Pmax,nPmax | |
α | Fitted parameter in exponential model, inversely proportional to Pmax | |
ᾶ | Normalized α, equal to α/Q0, also called “essential value,” inversely proportional to | α |