Abstract
In the traditional theory, demand functions are deried under the assumption that a consumer is a pure consuming agent, and obtained utility from the consumption of the market goods. However, according to the new consumer theories, which are known as the New Home Economics and the Frisch Demand Functions, a consumer\'s demand for the market goods is derived demands just as the demand for any factors of production. In the New Home Economics consisting of the two consumer theories, Linear Characteristics Model and Household Production Function Approach, a consumer is also considered a producer, and uses market goods as inputs to produce the non-market goods that provide utility. In the Frisch Demand Functions theory, it is assumed that a consumer behaves as a profit maximizing firm and uses market goods as inputs for producing uiility that is defined as output. This paper examines and compares the properties of the demand functions for the market goods derived within the framework of the traditional and the new consumer theories.
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