In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay (see also supply and demand). The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time.

Economists record demand on a demand schedule and plot it on a graph as a demand curve that is usually downward sloping. The downward slope reflects the relationship between price and quantity demanded: as price decreases, quantity demanded increases. In principle, each consumer has a demand curve for any product that he or she would consider buying, and the consumer's demand curve is equal to the marginal utility (benefit) curve. When the demand curves of all consumers are added up, the result is the market demand curve for that product. If there are no externalities, the market demand curve is also equal to the social utility (benefit) curve.

'''Elements of the Law of Demand As Melvin and Boyes note the law of demand is defined as: # The quantity of a well-defined good or service that: # People are willing and able to buy. # During a particular period of time. # Decreases/increases as the price of that good or service rises/falls # All other factors remain constant.

Melvin and Boyes (2010)

Demand is a relationship between two variables, price and quantity demanded, with all other factors that could affect demand being held constant.

:well defined - The key phrase in the first element is “well defined”. The purpose of the phrase is to ensure that we are examining the relationship between price and quantity demanded for the same good. If we are interested in demand for a particular good there is no reason to compare the relationship between the price of the good and the change in quantity demanded of a different goods. Goods are well defined if they share the same characteristics - brand, model, age, quality and performance to name a few. For example a Cadillac CTS-V is a high performance car manufactured by General Motors. The defining feature of the car is its engine - a supercharged OHV 6.2 liter L V-8. The engine produces 556 horsepower and 551 lb·ft of torque. The engine enables the vehicle to go from zero to 60 in 3.9 seconds. The car cost about 65,000.00. If we are interested in the demand for the CTS-V we need to compare the price of a CTS-V to the quantity demanded for a CTS-V and not a Ford Festiva.

:willing and able - to participate in the market a consumer must not only be willing to buy a good she must be able to buy as well. For example, John may want to buy a Cadillac CTS. However unless he has the cash or credit to consummate the purchase his unrealized desires are irrelevant.

:particular time period - demand measures the rate at which goods are being purchased during a specified period of time. For example to say that four thousand units are sold at a price of 65,000 does not tell us the level of demand unless we specify the time period per day per week per month.

:nature of the relationship - this portion of the definition establishes that the price and quantity demanded have a negative or inverse relationship along the demand curve.

:held constant ; there are innumerable factors other than price than can affect the level of demand. Some of the more important are income, price of related goods, number of buyers, expectations and tastes and preferences. To focus on the cause and effect relationship between the good's own price and the quantity of the good demanded all these other factors must be held constant. To hold a variable constant means to freeze its value and not allow it to change.

Demand schedule

The demand schedule shows the quantity of goods that a consumer would be willing and able to buy at specific prices under the existing circumstances. Some of the more important factors affecting demand are the price of the good, the price of related goods, tastes and preferences, income, and consumer expectations.

Factors affecting demand

Innumerable factors and circumstances could affect a buyer's willingness or ability to buy a good. Some of the more common factors are: :Good's own price:The basic demand relationship is between potential prices of a good and the quantities that would be purchased at those prices. Generally the relationship is negative meaning that an increase in price will induce a decrease in the quantity demanded. This negative relationship is embodied in the downward slope of the consumer demand curve. The assumption of a negative relationship is reasonable and intuitive. If the price of a new novel is high, a person might decide to borrow the book from the public library rather than buy it. Or if the price of a new piece of equipment is high a firm may decide to repair existing equipment rather than replacing it.

: Price of related goods: The principal related goods are complements and substitutes. A complement is a good that is used with the primary good. Examples include hotdogs and mustard, beer and pretzels, automobiles and gasoline. (Perfect complements behave as a single good.) If the price of the complement goes up the quantity demanded of the other good goes down. Mathematically, the variable representing the price of the complementary good would have a negative coefficient in the demand function. For example, Q_d = a - P - P_g where Q is the quantity of automobiles demanded, P is the price of automobiles and P_g is the price of gasoline. The other main category of related goods are substitutes. Substitutes are goods that can be used in place of the primary good. The mathematical relationship between the price of the substitute and the demand for the good in question is positive. If the price of the substitute goes down the demand for the good in question goes down.

:Personal Disposable Income: In most cases, the more disposable income (income after tax and receipt of benefits) you have the more likely you buy.

:Tastes or preferences:The greater the desire to own a good the more likely you are to buy the good. There is a basic distinction between desire and demand. Desire is a measure of the willingness to buy a good based on its intrinsic qualities. Demand is the willingness and ability to put one's desires into effect. It is assumed that tastes and preferences are relatively constant.

:Consumer expectations about future prices and income: If a consumer believes that the price of the good will be higher in the future he is more likely to purchase the good now. If the consumer expects that her income will be higher in the future the consumer may buy the good now. In other words positive expectations about future income may encourage present consumption.

This list is not exhaustive. All facts and circumstances that a buyer finds relevant to his willingness or ability to buy goods can affect demand. For example, a person caught in an unexpected storm is more likely to buy an umbrella than if the weather were bright and sunny.

Demand function and demand equation

The demand equation is the mathematical expression of the relationship between the quantity of a good demanded and those factors that affect the willingness and ability of a consumer to buy the good. For example, Q_d = f(P; P_rg, Y) is a demand equation where Q_d is the quantity of a good demanded, P is the price of the good, P_rg is the price of a related good, and Y is income; the function on the right side of the equation is called the demand function. The semi-colon in the list of arguments in the demand function means that the variables to the right are being held constant as we plot the demand curve in (quantity, price) space. A simple example of a demand equation is Q_d = 325 - P - 30P_rg + 1.4Y. Here 325 is the repository of all relevant non-specified factors that affect demand for the product. P is the price of the good. The coefficient is negative in accordance with the law of demand. The related good may be either a complement or a substitute. If a complement, the coefficient of its price would be negative as in this example. If a substitute, the coefficient of its price would be positive. Income, Y, has a positive coefficient indicating that the good is a normal good. If the coefficient was negative the good in question would be an inferior good meaning that the demand for the good would fall as the consumer's income increased. Specifying values for the non price determinants, Prg = 4.00 and Y = 50, results in the demand equation Q = 325 - P - 30(4) +1.4(50) or Q = 275 - P. If income were to increase to 55 the new demand equation would be Q = 282 - P. Graphically this change in a non price determinant of demand would be reflected in an outward shift of the demand function caused by a change in the x intercept.

Demand curve

The relationship of price and quantity demanded can be exhibited graphically as the demand curve. The curve is generally negatively sloped. The curve is two-dimensional and depicts the relationship between two variables only: price and quantity demanded. All other factors affecting demand are held constant. However, these factors are part of the demand curve and influence the location of the curve. In many economics graphs, such as that of the demand curve, the independent variable is plotted on the vertical axis and the dependent variable on the horizontal axis. Consequently, the graphical presentation is technically that of the equation P = f(Q) where f(Q) is the inverse demand function, although the graph is referred to simply as the demand curve.

Income and Substitution Effects

The negative slope of the demand curve is due to the substitution and income effects. If the relative price of a good falls consumers will substitute that good for more expensive goods -that will buy more of the good whose relative price has fallen and less of the other goods. This is the substitution effect. When the relative price of a good falls the consumer can buy the same bundle of goods as before the price decline and have some money left over. This money can be used to purchase more of all his consumption goods. In other words his purchasing power is called the income effect.

Discrete goods

In some cases it is impractical to represent the relationship between price and demand with a continuous curve because of small quantities demanded. Goods and services measured in small units are best represented with a smooth curve. Examples include food measured in calories and leisure measured in minutes. However, when the price of a good is very high in proportion to a consumer's budget there is a need to incorporate this limitation in both the mathematical analysis and the graph representing the relationship. While cars and houses are discrete goods for most people, cheaper goods such as glasses and bicycles are discrete goods only for the very poor. On the national level, nuclear power plants or space stations may be considered discrete goods. The concept is more useful at the individual consumer's level than at the consumers' aggregate level, because for example the difference between 3,000,000 cars demanded and 3,000,001 cars demanded is so little that the market demand for cars can be viewed as essentially continuous.

The demand curve in the discrete case

The price where the consumer is indifferent between buying an extra unit and not buying an extra unit is called the reservation price (r) after the same term used in auctions. If p is the price of the good and n units of the good are demanded, then r_n>=p>=r_n+1. For example, John is considering whether to buy a car or not (n=0 or n=1). The price of the car is $15,000 (p=15,000). The determining factor in John's consumption choice is his reservation price, r, simply the maximum price he is willing to pay for the car, reflecting his preferences. If John purchases this car and only this car then r₁>=15,000>=r₂ but if he does not purchase the car then r₀>=15,000>=r₁.

As with other demand curves, discrete demand curves are usually downward sloping, but in the case of discrete goods the curve is shaped like a staircase, reflecting the properties of goods which can only be consumed in quantities of integers. The horizontal line segments represent prices at which the consumer is indifferent between buying an extra unit or not. The vertical line segments represent ranges of prices where the quantity demanded does not vary. Nevertheless, as prices change within these ranges, the consumer surplus may change.

Movements versus shifts

The demand curve is a two-dimensional depiction of the relationship between price and quantity demanded. Movements along the curve occur only if there is a change in quantity demanded caused by a change in the good's own price. A shift in the demand curve, referred to as a change in demand, occurs only if a non-price determinant of demand changes. For example, if the price of a complement were to increase, the demand curve would shift leftward reflecting a decrease in demand. The shifted demand curve represents a new demand equation.

Movement along a demand curve due to a change in the good's price results in a change in the ''quantity demanded'', not a change in ''demand''. A change in ''demand'' refers to a shift in the position of the demand curve in two-dimensional space resulting from a change in one of the other arguments of the demand function.

From individual to market demand curve

The market demand curve is the horizontal summation of individual consumer demand curves. Aggregation introduces three additional non-price determinants of demand: (1) the number of consumers; (2) "the distribution of tastes among the consumers"; and (3) "the distribution of incomes among consumers of different taste." Thus if the population of consumers increases, ''ceteris paribus'' the market demand curve will shift outward (to the right). If the proportion of consumers with a strong preference for a good increases, ''ceteris paribus'' the demand for the good will increase. Finally if the distribution of income changes is favor of those consumers with a strong preference for the good in question the demand will shift out. Factors that affect individual demand can also affect market demand. However, net effects must be considered. For example, a good that is a complement for one person is not necessarily a complement for another; Further, the strength of the relationship would vary among persons. So in the aggregate the goods might be substitutes or complements. Finally the demand for a firm's product or services will often depend on such factors as competitors prices and marketing strategies.

Horizontal versus vertical summation

When adding individual demand curves it is critical that the summation be horizontal rather than vertical. The derivation of the market demand function involves adding quantities. The conventional graphical representation is of the inverse demand function. Adding inverse demand equations involves adding prices. In order to add the demand functions algebraically one must first convert the inverse equation to the standard demand function where quantity demanded is a function of price. For example, assume that there are two consumers in a given market and their respective demand function are P = 30 - 2Q and P = 30 - 6Q. To sum these function to obtain market demand curve we must first convert to standard from. Q = 15 - (P/2) and Q = 5 - (P/6). Adding Q1 and Q2 = 15 - (P/2) + 5 - (P/6) = 20 - (4P/6)= 20 - 2P/3.

Coefficient Addition

Note that in aggregating individual demand curves to determine market demand we added the coefficients for the goods own price. The unexpressed assumption that is the basis for the addition is the law of one price. With some variables addition of coefficients is more problematic. For example income is an important determinant of demand. However, the percentage of additional income that a person would spend for a particular good or service varies widely making simple coefficient addition less tenable. To borrow an example from Nicholson assume that we have two consumers and that individuals 1’s demand for oranges is

X₁ = 10 - 2Px + .1I₁ + .5Py and individual 2’s demand for oranges is X₂ = 17 - Px + 0.05I₂ + .5Py

Where Px = the price of oranges

Py is the price of grapefruits

I₁ is consumer 1’s income

I₂ is consumer 2’s income.

The market demand functions would be X1 + X2 = 27 - 3Px + .1I₁ + 0.05I₂ + Py.

Specifying values for I₁, I₂ and Px and substituting them into the demand equation we have:

'''X₁ + X₂ = 27 - 3Px + .1I₁ + 0.05I₂ + Py.

X₁ + X₂ = 27 - 3Px + .1(40)₁ + 0.05(20)₂ + 4

X₁ + X₂ = 27 - 3Px + 4 + 1 + 4

X₁ + X₂ = 38 - 3Px'''

If the price of grapefruits increased to 5 then the demand equation would become

*X₁ + X₂ = 39 - 3Px. Graphically this change in the price of a non price determinant of demand would be reflected in a shift out of the demand curve as the x intercept changed from 38 to 39.

Note that if an income tax was imposed that transferred 5000 from individual 1 to individual 2 then the new demand equation becomes

''''''*X₁ + X₂ = 27 - 3Px + .1I₁ + 0.05I₂ + Py.

X₁ + X₂ = 27 - 3Px + .1(35) + 0.05(25) + 5.

X₁ + X₂ = 27 - 3Px + 3.5 + 1.25 + 5.

X₁ + X₂ = 27 - 3Px + 9.75

X₁ + X₂ = 36.75 - 3Px''''''

The redistribution of income has reduce demand and would be reflected in a shift inward of the demand curve. Note that the assumption that each perosn's demand for a good is independent of everyone else's demand for the same good is a necessary assumption for aggregation. Finally one must be aware that simple addition of coefficients can produce non-sensical results over certain range of prices. That is individual demand curves may not be valid at certain prices.

As Frank notes, "Horizontal summation works as a way of generating market demand curves from individual demand curves because all consumers in the market face the same market price for the product. But when incomes differ widely from one consumer to another, it makes no sense to hold income constant and add quantities across consumers."

Price elasticity of demand (PED)

PED is a measure of the sensitivity of the quantity variable, Q, to changes in the price variable, P. Elasticity answers the question of the percent by which the quantity demanded will change relative to (divided by) a given percentage change in the price. For infinitessimal changes the formula for calculating PED is the absolute value of (∂Q/∂P)×(P/Q).

Determinants of PED

The overriding factor in determining PED is the willingness and ability of consumers after a price changes to postpone immediate consumption decisions concerning the good and to search for substitutes (wait and look). The greater the incentive the consumer has to delay consumption and search for substitutes and the more readily available substitutes are the more elastic the demand will be. Specific factors are: :Availability of substitutes: The more choices that are available, the more elastic is the demand for a good. If the price of Pepsi goes up by 20%, one can always purchase Coke, 7-Up, Dr. Pepper and so forth. One's willingness and ability to postpone the consumption of Pepsi and get by with a "lesser brand" makes the PED of Pepsi relatively elastic. :Necessity: With a true necessity a consumer has neither the willingness nor the ability to postpone consumption. There are few or no satisfactory substitutes. Insulin is the ultimate necessity, so the demand for it is inelastic. :Importance is terms of proportion of income spent on a good: Most consumers have both the willingness and ability to postpone the purchase of big ticket items. If an item constitutes a significant portion of one's income, it is worth one's time to search for substitutes. A consumer will give more time and thought to the purchase of a $3000 television than a $1 candy bar, so demand for the former will be more elastic than demand for the latter. :Duration: The more time a consumer has to search for substitute goods, the more elastic the demand. :Breadth of definition: how specifically the good is defined. For example, the demand for automobiles is less elastic than the demand for Toyotas, which is in turn less elastic than the demand for Red Toyota Priuses. :Availability of information concerning substitute goods: The easier it is for a consumer to locate the substitute goods, the more willing he will be to undertake the search, and the more elastic demand will be.

Elasticity along linear demand curve

The slope of a linear demand curve is constant. The elasticity of demand changes continuously as one moves down the demand curve because the ratio of price to quantity continuously falls. At the point the demand curve intersects the y-axis PED is infinitely elastic, because the variable ''Q'' apperaing in the demominator of the elasticity formula is zero there. At the point the demand curve intersects the x-axis PED is zero, because the variable ''P'' appearing in the numerator of the elasticity formula is zero there. At one point on the demand curve PED is unitary elastic: PED equals one. Above the point of unitary elasticity is the elastic range of the demand curve (meaning that the elasticity is greater than one). Below is the inelastic range, in which the elasticity is less than one. The decline in elasticity as one moves down the curve is due to the falling P/Q ratio.

Constant price elasticity demand

$Q=aP^\{c\}$ where a & c are parameter, and the constant price elasticity is c and $c\backslash le\; 0$.

Market structure and the demand curve

In perfectly competitive markets the demand curve, the average revenue curve, and the marginal revenue curve all coincide and are horizontal at the market-given price. The demand curve is perfectly elastic and coincides with the average and marginal revenue curves. Economic actors are price-takers. Perfectly competitive firms have zero market power; that is, they have no ability to affect the terms and conditions of exchange. A perfectly competitive firm's decisions are limited to whether to produce and if so, how much. In less than perfectly competitive markets the demand curve is negatively sloped and there is a separate marginal revenue curve. A firm in a less than perfectly competitive market is a price-setter. The firm can decide how much to produce or what price to charge. In deciding one variable the firm is necessarily determining the other variable

Inverse demand function

In its standard form a linear demand equation is Q = a - bP. That is, quantity demanded is a function of price. The inverse demand equation, or price equation, treats price as a function g of quantity demanded: P = f(Q). To compute the inverse demand equation, simply solve for P from the demand equation. For example, if the demand equation is Q = 240 - 2P then the inverse demand equation would be P = 120 - .5Q, the right side of which is the inverse demand function.

The inverse demand function is useful in deriving the total and marginal revenue functions. Total revenue equals price, P, times quantity, Q, or TR = P×Q. Multiply the inverse demand function by Q to derive the total revenue function: TR = (120 - .5Q) × Q = 120Q - 0.5Q². The marginal revenue function is the first derivative of the total revenue function; here MR = 120 - Q. Note that the MR function has the same y-intercept as the inverse demand function in this linear example; the x-intercept of the MR function is one-half the value of that of the demand function, and the slope of the MR function is twice that of the inverse demand function. This relationship holds true for all linear demand equations. The importance of being able to quickly calculate MR is that the profit-maximizing condition for firms regardless of market structure is to produce where marginal revenue equals marginal cost (MC). To derive MC the first derivative of the total cost function is taken. For example assume cost, C, equals 420 + 60Q + Q². Then MC = 60 + 2Q. Equating MR to MC and solving for Q gives Q = 20. So 20 is the profit maximizing quantity: to find the profit-maximizing price simply plug the value of Q into the inverse demand equation and solve for P.

Residual demand curve

The demand curve facing a particular firm is called the residual demand curve. The residual demand curve is the market demand that is not met by other firms in the industry at a given price. The residual demand curve is the market demand curve D(p), minus the supply of other organizations, So(p): Dr(p) = D(p) - So(p )

Is the demand curve for PC firm really flat?

Practically every introductory microeconomics text describes the demand curve facing a perfectly competitive firm as being flat or horizontal. A horizontal demand curve is perfectly elastic. If there are n identical firms in the market then the elasticity of demand PED facing any one firm is :: PED_mi = nPED_m - (n - 1) PES where PEDm is the market elasticity of demand, PES is the elasticity of supply of each of the other firms, and (n -1) is the number of other firms. This formula suggests two things. The demand curve is not perfectly elastic and if there are a large number of firms in the industry the elasticity of demand for any individual firm will be extremely high and the demand curve facing the firm will be nearly flat.

For example assume that there are 80 firms in the industry and that the demand elasticity for industry is - 1.0 and the price elasticity of supply is 3. Then :PEDmi = nPEDm - (n - 1) PES, :PEDmi = (-1) - (80 - 1) 3, :PEDmi = -1(80) - (79 x 3) :PEDmi = -80 - 237 = - 317

That is the firm PED is 317 times as elastic as the market PED. If a firm raised its price "by one tenth of one percent demand would drop by nearly one third." if the firm raised its price by three tenths of one percent the quantity demanded would drop by nearly 100%. Three tenths of one percent marks the effective range of pricing power the firm has because any attempt to raise prices by a higher percentage will effectively reduce quantity demanded to zero.

See also

Demand chain

Demand curve

Demand schedule

Derived demand

Planned obsolescence

Law of demand

Law of supply

Supply (economics)

Supply and demand

Utility

Notes

Category:Consumer theory

bs:Potražnja ca:Demanda (economia) de:Nachfrage (Mikroökonomie) es:Demanda (economía) gl:Demanda hr:Potražnja it:Domanda (economia) pl:Popyt pt:Demanda ru:Спрос sq:Kërkesa sk:Dopyt sr:Potražnja

Coordinates	23°33′″N46°38′″N
Name	Shane McMahon
Names	Boy WonderCreature of the NightShane McMahonShane-O-MacThe MoneyShane Stevens
Height
Weight
Birth date	January 15, 1970
Birth place	Gaithersburg, Maryland
Resides	New York City, New York
Billed	Greenwich, Connecticut
Trainer	Vince McMahonPat PattersonJerry Brisco
Debut	October 26, 1998 }}

Shane Brandon McMahon (born January 15, 1970) is an American executive, currently serving as the Chief Executive Officer and Chairman of YOU On Demand. A former executive and professional wrestler for World Wrestling Entertainment (WWE), he is the son of WWE Chairman and CEO Vince McMahon and former US Senate candidate Linda McMahon. He is also the older brother of Stephanie McMahon and brother-in-law of professional wrestler Paul "Triple H" Levesque. He spent over 20 years in the WWE, leaving in January 2010.

In WWE, he is a one-time European Champion and a one-time Hardcore Champion. McMahon is considered the fourth generation McMahon as he follows his great-grandfather, Jess McMahon, his grandfather Vincent J. McMahon, and his father Vincent K. McMahon.

Wrestling career

McMahon began his on-screen career as a referee named Shane Stevens in 1990 and was the first performer to walk out to greet the audience at WrestleMania VI. Shane McMahon also refereed during the 1991 Royal Rumble match. He soon left behind the blue shirt and bow-tie and took on the role of a backstage official at WrestleMania VIII in an attempt to break up a worked brawl between Randy Savage and Ric Flair.

The Corporation (1998–2000)

McMahon became a regular while being an on-air character in 1998, during his father's on-air feud with Steve Austin. In the early days of that angle, McMahon offered support for his father in cameo roles, but he did not become an enforcer like Gerald Brisco and Pat Patterson. Later, in the summer, McMahon was a color commentator on ''Sunday Night Heat'' for a short amount of time with Jim Ross, and announced with Jerry Lawler on the 1999 videogame WWF Attitude. After the announcing stint was over, McMahon took a role as a regular character, turning on his father by signing Austin to a contract after Vince demoted him to the position of referee. Yet at Survivor Series, McMahon turned heel by turning on Austin and became an official member of The Corporation.

McMahon became a key component in the Corporation angle, winning the European Championship from X-Pac. The two met in a rematch at WrestleMania XV; McMahon got help from his childhood friends the Mean Street Posse and Triple H, who turned on X-Pac during the match, to retain the championship. McMahon then retired the title, wanting to retire as an "undefeated champion". McMahon later gave the title to Mideon, who found it in McMahon's duffel bag, thus reactivating it.

After WrestleMania, Vince briefly made his second face run and McMahon took control of the Corporation. With wrestlers such as Triple H in this new faction, McMahon feuded with his father and a new faction made up of former Corporation members, The Union. On the UPN pilot for ''SmackDown!'', McMahon joined forces with The Undertaker and the Ministry of Darkness to form the Corporate Ministry. Eventually, Vince was revealed to be the mastermind behind this faction, and his face turn was explained to be a plot to get the WWF Title off Austin. Austin then met McMahon and Vince in a ladder match at the King of the Ring for ownership of the WWF, as in the storyline, Austin had 50%, which was assigned to him by Linda and Stephanie McMahon, upset by Vince and McMahon's complicity in the storyline kidnapping of Stephanie by the Corporate Ministry, while McMahon and Shane each had 25%. McMahon and Vince won the match when a mystery associate raised the briefcase out of Austin's reach when he climbed the ladder, allowing Vince and McMahon to grab the case and regain 100% ownership of the WWF.

With his ownership reinstated, McMahon shifted his sights to, then babyface, Test, who was kayfabe dating McMahon's sister, Stephanie. McMahon disapproved of the relationship, feeling Stephanie was dating "beneath the family's standards", and wound up feuding with Test. With help from the Mean Street Posse, McMahon made Test's life a living hell. At SummerSlam, McMahon met Test in a "Love Her or Leave Her" match, with the stipulation being that if McMahon won the match, Test and Stephanie could no longer see each other, and if he lost, McMahon would give his blessings to the pair. Test was able to get the win, and McMahon eventually settled his differences with Test, thus making his second face run by becoming his ally. Later in the year, Stephanie turned heel, siding with her new kayfabe husband then-heel, Triple H (the two began their off-screen relationship around this time, but did not marry in real life until 2003). With that, the McMahon-Helmsley Faction began, and all of the other McMahons disappeared from television.

At No Way Out, McMahon made his return as a heel again by helping The Big Show defeat The Rock. This started the road to WrestleMania 2000, where in the four-way main event each wrestler had a McMahon in his corner. The Rock had Vince, the Big Show had McMahon, Triple H had Stephanie, and Mick Foley had Shane's mother, Linda McMahon. The Big Show was the first man eliminated, and soon after he and McMahon went their separate ways. This led to a match between the two at Judgment Day, which McMahon won after receiving help from Test and Albert, amongst others. Over the course of the next several months, McMahon allied himself with other heel wrestlers, including Edge and Christian, who helped him win the Hardcore Championship from Steve Blackman. McMahon met Blackman in a rematch at SummerSlam, losing the title after falling through the stage (McMahon climbed up the set running away from Blackman, who gave chase and hit Shane with a Singapore cane, knocking him off). McMahon then disappeared from television, making occasional cameo appearances.

The Alliance (2001)

In 2001, McMahon made his third face run by once again feuding with his father, Vince. The feud with Vince was due to the elder McMahon's (kayfabe) affair with Trish Stratus. As fate would have it, rival World Championship Wrestling (WCW) was sold to the World Wrestling Federation one week before the Father versus Son match at WrestleMania X-Seven. In terms of the storyline, Vince demanded that Ted Turner sign the contract at WrestleMania X-Seven. With Vince's ego getting the best of him, McMahon was able to seize the opportunity and purchase WCW himself, to the shock of Vince. McMahon defeated his father at ''WrestleMania X-Seven'', in a Street Fight. At Backlash, McMahon was in a Last Man Standing match against the Big Show. McMahon performed the Leap of Faith (from the top of the scaffolding), causing McMahon to get the victory when Show could not answer the 10 count. He won because Test lifted him up and put him on the crane to hold Shane up on his feet.

McMahon then began a feud with Kurt Angle. By the King of the Ring, on June 24, McMahon's feud with Angle had culminated. After already participating in two tournament matches that night, Angle wrestled McMahon in a Street Fight. After a suplex on the hard floor, Angle was thought to have cracked his tailbone. Angle also delivered an overhead belly to belly suplex through the plated glass stage set, but McMahon did not break through on the first attempt, causing him to fall head-first onto the concrete floor. After a successful second attempt, Angle was to put him through a second plate back out to the stage and again failed two more times. The match also had Shane missing a shooting star press and ended with Angle performing the Angle Slam off the top rope before scoring the victory over a bloodied McMahon.

McMahon then began to lead his WCW wrestlers against his father and the WWE wrestlers, eventually joining forces with Paul Heyman and his band of Extreme Championship Wrestling (ECW) wrestlers, along with their new owner, McMahon's sister Stephanie McMahon-Helmsley. Calling themselves The Alliance, they pledged to finally run the World Wrestling Federation (and specifically their father) out of business. Ultimately, The Invasion came to a head at Survivor Series. The team of McMahon, Steve Austin, Kurt Angle, Rob Van Dam, and Booker T lost to the team of The Rock, Chris Jericho, The Undertaker, Kane, and the Big Show. The WWF defeated Alliance, caused it to (kayfabe) go out of business. The following night on ''Raw'', Vince publicly fired both Shane and Stephanie, which Shane took in stride, admitting that he lost to the better man, while Stephanie pleaded with her father before being forcefully removed from the arena. Following the destruction of the WCW/ECW Alliance, McMahon remained off-screen, eventually briefly reappearing three times during 2002 to 2003.

Sporadic appearances (2003–2005)

At WrestleMania XIX, McMahon made his first on-screen appearance in two years as he went to check on his father's welfare following a street fight with Hulk Hogan. He turned face once more in the summer of 2003 by getting involved in a feud with Eric Bischoff (who had made improper remarks and gestures to Shane's mother Linda). He defeated Bischoff in a street fight at SummerSlam. McMahon also got involved in a rivalry with Kane after Kane gave Linda a Tombstone Piledriver because she did not name him the number one contender to the World Heavyweight Championship. Their feud culminated in McMahon losing a Last Man Standing match at Unforgiven and to a first ever Ambulance match which he lost after a brutal match at Survivor Series.

After Survivor Series, McMahon left Raw to focus his attention on the executive creative staff and on his new family. At WrestleMania XX, McMahon appeared briefly on camera during the opening of the event with Vince and his newborn son, Declan. In a special 3-hour edition of ''Raw'' in October 2005, billed as ''WWE Homecoming'', all four members of the McMahon family were given a Stone Cold Stunner by Stone Cold Steve Austin. The following week, Vince demanded an apology from ringside commentators for not coming to his family's aid, which developed into a new feud. McMahon also appeared at Survivor Series, though he did not appear on television. He can be seen on the DVD extra backstage talking to Theodore Long, when The Boogeyman tried to scare off McMahon, who made no deal about it.

Feuding with DX (2006–2007)

McMahon turned heel once more by again siding with his father to help in the feud with Shawn Michaels. At the 2006 Royal Rumble, McMahon eliminated Michaels by throwing him over the top rope. After weeks of attacks from behind by McMahon, one of which saw McMahon force an unconscious Michaels to kiss Vince's rear end, McMahon and Michaels faced each other in a Street Fight on the March 18, 2006 edition of ''Saturday Night's Main Event''. In a fashion similar to the real life Montreal Screwjob, McMahon put Michaels in the Sharpshooter as Vince called for the bell and gave McMahon the victory. The McMahons' feud with Michaels took a religious turn after WrestleMania 22 (where Michaels defeated Vince McMahon). Vince claimed that Michaels's victory was a result of "divine intervention" and booked himself and his son in a match at Backlash against Michaels and his tag team partner "God". Around this time, Vince began to act strangely and at one point considered himself a god. McMahon, who at this time was referred by Vince as "the product of his semen", teamed with Vince to defeat Michaels and "God" at Backlash, due to help from the Spirit Squad.

This feud later enveloped Triple H, who the McMahons had enlisted to take out Michaels. Triple H was getting frustrated with this, as it was distracting from his quest to regain the WWE Championship. Triple H wound up bashing McMahon with his signature weapon, the sledgehammer, in what was considered to be an accident that put McMahon out of the ring for a while. Vince (and later McMahon, who had recovered) sought to humble Triple H and get some retribution. Triple H then began a feud with the McMahons shortly after, leading to his siding with Shawn Michaels and the reformation of D-Generation X (DX). At SummerSlam, McMahon, along with his father Vince, were defeated by DX. About a month later at Unforgiven, The McMahons and then ECW World Champion The Big Show faced DX in a Hell in a Cell match. McMahon was injured after Michaels elbow dropped a chair which was around McMahon's neck. DX emerged victorious at Unforgiven, and McMahon disappeared from television.

On the March 5 edition of ''Raw'', McMahon came back to inform his father, Vince, about the "guest referee" for the "Battle of the Billionaires". He told him that their opponents on the Board of Directors had won the vote, 5-4. The McMahons had intended for McMahon to be the referee. Instead, the guest referee turned out to be the McMahons' old rival, Steve Austin. During the "Battle of the Billionaires" match at WrestleMania 23, McMahon's attempt to interfere on his father's behalf was stopped by Austin. During the match, McMahon was able to hit the Coast-to-Coast dive with a trash can into Bobby Lashley's face. On April 9, McMahon officially joined the Vince/Umaga/Lashley feud when he faced Lashley for the ECW Championship in a Title vs Hair match which ended in McMahon getting disqualified on purpose by punching the referee. After the match, Umaga, Vince, and McMahon all attacked Lashley. At Backlash in a Handicap match for the ECW title, McMahon along with his father and Umaga defeated Lashley for the ECW Championship. Vince gained the pin making him the ECW World Champion. At Judgment Day, Lashley faced McMahon, Vince, and Umaga again, in a rematch for the ECW World Championship. This time, Lashley won the match, but since he pinned McMahon rather than Vince, Vince remained the champion. At One Night Stand McMahon and Umaga tried to help Vince retain the ECW World title against Bobby Lashley, but failed when Lashley speared Vince and pinned him for the win.

On the taped edition of ''Raw'' that aired on September 3, McMahon, along with his mother Linda and his sister Stephanie, made appearances to confront Vince about his illegitimate child. McMahon then returned at Survivor Series to accompany Hornswoggle, alongside his father, in his match against The Great Khali. After that, he would be absent from television for nearly a year.

Feuding with The Legacy (2008–2009)

After the severe injury that Vince McMahon sustained on the June 23 episode of ''Raw'', Shane requested for the Raw roster to stand together during what was a turbulent time. A sign fell on top of Mr. McMahon during his participation in the Million Dollar Mania sweepstakes. Shane's plea, however, was ignored and subsequently, Shane and his sister Stephanie urged the roster to show solidarity. On the July 28 episode of ''Raw'', McMahon made an appearance to announce Mike Adamle as his and Stephanie's choice to be the new Raw General Manager. After Mike Adamle stepped down as General Manager, he and Stephanie became the interim on-screen authority figures for the Raw program. On the November 24 episode of ''Raw'', Shane and Stephanie argued over who was in charge, leading to Stephanie telling him that ''Raw'' is her show. After being slapped by Stephanie, Shane finished the segment by telling her that from that day onwards, he was going to watch Stephanie run ''Raw'' "right into the ground".

At the start of 2009, Randy Orton began a feud with the McMahon family. On the January 19 episode of ''Raw'', Orton punted Vince McMahon in the head, after he had tried to fire Orton from the company for previous comments made about his daughter Stephanie McMahon. The following week, Shane returned to television, leading him to attack Orton for his actions. On the February 2 episode of ''Raw'', it was revealed that Orton challenged Shane to a No Holds Barred match at No Way Out, to which he accepted. At No Way Out, Orton defeated Shane in the match. The following night, Shane challenged Orton to an unsactioned match for that episode's main event. The match ended with Orton punting Shane in the head, as well as performing an RKO on Stephanie McMahon.

Shane returned on the March 30 episode of ''Raw'', alongside Triple H and his father, to confront and attack The Legacy (Orton, Ted DiBiase, and Cody Rhodes). On the April 6 episode of ''Raw'', it was announced that Shane would compete in a six-man tag team match against The Legacy at Backlash alongside Triple H and Batista, the latter of whom had returned from injury, where the stipulation was that if any member of Orton's team pinned any member of Triple H's team, Orton would win Triple H's WWE Championship; However, if any member of Triple H's team was counted out or disqualified, Orton would win the title. On the May 4th edition of Raw he was kayfabe injured at the hands of Orton and Legacy, suffering a broken leg/ankle, thus writing him off of TV again.

Leaving WWE

At the end of 2009 McMahon had announced that he was going to resign from the WWE on January 1, 2010. It was later announced that McMahon was leaving in order to pursue other endeavors. The resigning of McMahon leaves only two McMahons in the WWE: his father, Vincent Kennedy McMahon, and his sister, the Executive Vice President of Creative Development and Operations, Stephanie McMahon who is married to WWE superstar Triple H.

On October 21, 2006, Pride Fighting Championships held Pride 32 at the Thomas & Mack Center in Las Vegas, Nevada. Shane was in attendance at the event, resulting in speculation that WWE could be considering promoting MMA events. On November 17, WWE and Dream Stage Entertainment officials, the parent company of Pride Fighting Championships, had a meeting at WWE global headquarters in Stamford, Connecticut. The meeting focused on the possibility of the two groups doing some form of business together in the future. Yet on March 27, 2007, Nobuyuki Sakakibara, president of DSE, announced that Station Casinos, Inc. magnate Lorenzo Fertitta, also one of the co-owners of Zuffa, the parent company of the Ultimate Fighting Championship, had made a deal to acquire all the assets of Pride FC from DSE after Pride 34 in a deal worth about USD 70 million. Therefore, the deal between DSE and WWE has reportedly been called off.

Later in November, McMahon and WWE Canada President Carl DeMarco traveled to South America to finalize a major TV deal in Brazil, which allowed their television station to air ''Raw'' and ''SmackDown''.

On October 16, 2009, WWE published a statement from Shane McMahon announcing his resignation, and also issued an official press release stating that the resignation was tendered effective January 1, 2010. No specific reason was given for the resignation. McMahon stated in the WWE press release, "Having been associated with this organization for the majority of my life, I feel this is the opportune time in my career to pursue outside ventures." thus ending his 20 year stint with the company on January 1, 2010.

On August 3, 2010, it was released that McMahon had signed a deal to become the new CEO of China Broadband Inc., a provider of cable broadband services, as well as other digital and analog related services, in Shandong province of the People's Republic of China. The company is based in Boulder, Colorado.

He also sits on the Board of Directions for International Sports Management representing talent such as Ernie Els and Rory McIlroy.

He was seen at the final hole of the 2011 U.S. Open with Rory McIlroy's father just minutes before Rory, who McMahon represents officially, confirmed his first U.S Open win and his first golfing major win. McMahon was also seen shaking the hand of new Open champion Darren Clarke as he left the 18th green at Royal St. George on July 17th 2011. Clarke is also represented by International Sports Management.

Personal life

McMahon married his high school sweetheart Marissa Mazzola on September 14, 1996. They used to live across the street from each other. McMahon has stated that Marissa was the only girlfriend he ever had. Together they have two sons, Declan James and Kenyon Jesse. Declan was born on February 13, 2004 and weighed nine pounds. Kenyon "Kenny" was born March 26, 2006.

McMahon is the uncle of Aurora Rose, Murphy Claire and Vaughn Evelyn Levesque, daughters of his sister Stephanie and her husband Paul "Triple H" Levesque.

McMahon usually wears baseball jerseys for his matches, with the front saying ''Shane O Mac'' and the back reserved for ''McMahon'', the name of the pay-per-view in which he's participating, or some other phrase relating to the match and/or his opponent (for example, he was in a rivalry with his dad, Vince, and had a street fight with him at WrestleMania X-Seven; for this match, Shane's jersey stated, "Vince, we have a problem (both a reference to Vince and to the fact that they were in Houston.)." When Vince was interviewed in ''Playboy'', he mentioned that although Shane is right-handed, he often throws left-handed punches. McMahon's football jersey number was 61, the same as his dad Vince.

McMahon had a brief role in the 2002 film ''Rollerball''. In September 2006, he was named one of ''Detail'' magazine's "50 Most Powerful Men Under 42" in the annual "power issue".

In wrestling

Finishing moves

''Coast To Coast'' (Corner-to-corner missile dropkick, usually driving a garbage can into the face of the opponent)

''Leap of Faith'' (Diving elbow drop, sometimes to the outside of the ring to drive an opponent through the announce table)

Signature moves

*Boston crab

*Bronco buster – parodied from X-Pac

*Camel clutch

*Elbow drop

*Float–over DDT or a running tornado DDT

*Inverted facelock neckbreaker, often done repeatedly in quick succession

*Low blow

*''Mac Factor'' (Sitout facebuster) – parodied from X-Pac

''Shane O' Shuffle'' (Three left-handed jabs followed by a right-handed knockout punch) – parodied from Rocky Johnson

*Sharpshooter – used on special occasions in reference to the Montreal Screwjob

*Shooting Star Press

Signature foreign objects

*Flying strike with any foreign object

*Kendo stick

*Garbage can

*Shane-Wire

Managers

*Stephanie McMahon

*Vince McMahon

Wrestlers managed

*Mean Street Posse (Joey Abs, Pete Gas and Rodney)

*Test

*The Big Show

*Edge and Christian

*Chris Benoit

*Kurt Angle

*Booker T

*Vince McMahon

*Umaga

*The Rock

*Triple H

Nicknames

"Shane-O Mac"

*"The Demon Seed"

Entrance themes

*"No Chance in Hell" by Jim Johnston (1998–2001; Used while a part of The Corporation)

*"Here Comes the Money" by Naughty by Nature (2001–2009)

Championships and accomplishments

World Wrestling Federation

WWF European Championship (1 time)

WWF Hardcore Championship (1 time)

* Kiss My Ass Club Member

*Executive Vice-President for Global Media

Pro Wrestling Illustrated

Rookie of the Year (1999)¹

*PWI Feud of the Year (2001) vs. Vince McMahon

Wrestling Observer Newsletter

*Worst Feud of the Year (2006) with Vince McMahon vs. D-Generation X (Shawn Michaels and Triple H)

¹McMahon refused the award, stating "These are for the boys, not me."

YOU On Demand

*Chairman & Chief Executive Officer (present job)

Job titles

1989–1990 – WWF referee 1993 – WWF's television production, sales, marketing, and international business development divisions 1998 – Helped form the company's digital media department and launched WWF.com (now known as WWE.com), a site that has more than fifteen million unique visitors a month 2003-2010 – Executive President of WWE Global Media, overseeing international TV distribution, live event bookings, digital media, consumer products and publishing

2010–Present - Chairman and CEO of YOU on Demand Holdings, Inc. (Formerly China Broadband Inc.)

Notes

References

External links

Online World of Wrestling profile

WWE Corporate Bio

China broadband profile

You on Demand profile

Category:1970 births Category:American professional wrestlers Category:American Roman Catholics Category:Boston University alumni Category:American people of Irish descent Category:Living people Category:People from Greenwich, Connecticut Category:People from New York City Category:Professional wrestling announcers Category:Professional wrestling executives Category:Professional wrestling managers and valets Category:Professional wrestling referees Category:WWE Category:People from Montgomery County, Maryland

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