Xueqing Fu

University / Organisation : Peking University

Paper or project ? paper

Title : Fluctuating Demand and Economic Regulation:A Case Study of Peking University Restaurants

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Abstract : Based on Peking University Restaurants’ case study, I present an asymmetric information model of the economic regulation to operate in order to meet the fluctuating demand of consumers. I find that, althoughthe distribution of students' eating habits matters for the food providers' decision on flexible plants, the power of influence decreases as students' inter-state utility gap increases. Besides, under certain conditions, there's a redistribution effect which benefits the initial disadvantaged types and exploits the initial advantaged types.