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Interpretation(s) of elasticity in operant demand
Shawn P Gilroy1, Brent A Kaplan2, Derek D Reed3
1Louisiana State University.
Journal of the Experimental Analysis of Behavior
|June 17, 2020
Summary
This report clarifies the varied interpretations of elasticity (η) in operant demand, distinguishing it from Essential Value (EV), PMAX, and alpha (α) for precise scientific communication.
Area of Science:
- Behavioral Economics
- Operant Psychology
- Quantitative Analysis
Background:
- The concept of 'demand elasticity' (η) in operant psychology has been discussed since the Exponential model (Hursh & Silberberg, 2008).
- Existing literature often uses 'demand elasticity' interchangeably with Essential Value (EV), PMAX, and the rate of change constant α.
- This ambiguity hinders precise interpretation of operant demand functions.
Purpose of the Study:
- To provide a comprehensive account of the different interpretations of elasticity (η) within the operant demand framework.
- To clarify the mathematical relationships between η, EV, PMAX, and α.
- To offer recommendations for consistent terminology and mathematical detail in published research on operant demand.
Main Methods:
- Review of mathematical terms and differentiation operations relevant to operant demand parameters.
- Worked examples calculating elasticity (η) for both linear and nonlinear demand functions.
- Analysis of the mathematical underpinnings defining the relationships between η, EV, PMAX, and α.
Main Results:
- Detailed explanation of elasticity (η) and its various applications in interpreting fitted operant demand functions.
- Demonstration of the distinct mathematical bases for η, EV, PMAX, and α.
- Identification of specific scenarios where each metric provides unique insights into operant behavior.
Conclusions:
- Elasticity (η) is a distinct metric from EV, PMAX, and α, requiring specific interpretation.
- Consistent and precise use of terminology, supported by detailed mathematical explanations, is crucial for advancing operant demand research.
- Recommendations are provided for authors to enhance clarity and reproducibility in published operant demand studies.
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