LAUSR

Behavioral economic demand has been shown to have high utility in quantifying the value or consumption of a commodity. Demand describes the relationship between cost and consumption of a commodity, and tends to be curvilinear with consumption approaching zero as the cost increases to a sufficiently high cost to suppress consumption completely. Over a period spanning greater than three decades, behavioral economists have made great strides in the modeling of demand and addressing analytical challenges, although this work is not complete and unresolved challenges remain. The analytical challenges associated with modeling zeros both when they arise as consumption values of zero and when consumption at zero cost is assessed have been a substantial part of this evolution in models. The goals of this methodological review are to provide a historical overview of the major behavioral economic demand models that have been proposed, describe some of the common difficulties with analyzing behavioral economic demand, and discuss general considerations for the analysis of demand. In an environment with evolving and multiple competing analytical practices, we conclude that researchers can maximize scientific rigor by embracing transparency in their analysis choices and employing techniques such as sensitivity analyses to determine if their analysis choices impact the conclusions of their experiments.