Utility: the key to understanding markets

The paper treats the problem of modelling markets from the perspective of a simple yet comprehensive theory of consumer markets.
  

Utility: The Key to Understanding Markets

P.C. Hutchinsonand L. J. MarchantMarcos Ltd

Understanding markets: the Optima model

The basic assumption of the Optima model is that individuals making purchases will choose as if to maximise net utility; this is to say, they will choose the brand which suits them best at the time. The purchase is made in the expectation of the benefits which will ensue; in a sense it these hoped-for benefits rather than the brand itself which the purchaser buys. The term 'net' reminds us that the choice is affected both by the anticipated...

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