PSERC
5
Demand-Side Behavioral
Representation
Representation
1. Start
with Final Demand: We Need to
Understand
Behavior of End-Use Customer
Before We Represent
Marketing Agents
2.Disaggregate Observed Market Demand
Characteristics
to Representative Individual
Buyers
3.Develop “Induced Valuation” Relationships for
Individuals
4. Customer’s
Problem:
Select Electricity Consumption in
Each Period to Maximize
Total Value – Total
Expenditure
5.Compensate Subjects in Proportion to Net
Benefits
(as computed in 4)