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In economics, demand is the desire to own anything, the ability to pay for it, and the willingness to pay. Basically Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship. ^[1] (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.

Introduction[link]

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.

Demand[link]

Demand refers to the quantities of a product that purchasers are willing and able to buy at various prices per period of time, 'all other things being equal

Elements of the Law of Demand As Melvin and Boyes note the law of demand is defined as:

1. The quantity of a well-defined good or service that:
2. People are willing and able to buy.
3. During a particular period of time.
4. Decreases/increases as the price of that good or service rises/falls
5. 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.^[2]

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.^[3]

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,^[4] number of buyers, expectations and tastes and preferences.^[5] 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.

Factors affecting demand[link]

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.^[6] 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.^[7] 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.^[8] 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.^[8] 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.^[8]

Personal Disposable Income: In most cases, the more disposable income (income after tax and receipt of benefits) you have the more likely you buy.^[9][10]

Tastes or preferences: The greater the desire to own a good the more likely you are to buy the good.^[11] 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.^[12]

population:if the population grows this means that demand will also increase nature of the good:if the good is a basic commodity it will lead to a higher demand

• 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[link]

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[link]

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[link]

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.^[13] 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.^[13] This money can be used to purchase more of all his consumption goods. In other words his purchasing power is called the income effect.^[13]

Discrete goods[link]

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[link]

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[link]

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[link]

The market demand curve is the horizontal summation of individual consumer demand curves.^[14][15] 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."^[16] Thus if the population of consumers increases, ceteris paribus the market demand curve will shift outward (to the right).^[16] If the proportion of consumers with a strong preference for a good increases, ceteris paribus the demand for the good will increase.^[16] 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.^[17] 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;^[18] 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.^[19]

Horizontal versus vertical summation[link]

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.^[20] 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.^[21] For example, assume that there are two consumers in a given market and their respective demand functions are P = 30 - 2Q and P = 30 - 6Q. To sum these functions to obtain the market demand curve we must first convert to standard form, that is Q = 15 - (P/2) and Q = 5 - (P/6). Then, adding Q1 and Q2 yields 15 - (P/2) + 5 - (P/6) = 20 - (4P/6)^[22]= 20 - 2P/3.

Coefficient Addition[link]

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^[23] 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 Py 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.^[24] Note that the assumption that each person's demand for a good is independent of everyone else's demand for the same good is a necessary assumption for aggregation.^[25] 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.^[25]

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."^[26]

Price elasticity of demand (PED)[link]

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[link]

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 in 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.^[27]

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.

Price Range:What is the price range of the product in question

Nature of Commodity: Whether the Commodity is a Necessity, Luxury or Comfort. If the commodity is a necessity, the demand will be inelastic or consumers will pay any price for this commodity as it is required for the sustenance of Human life eg. Water,Food grains etc.. If the commodity is a luxury or a comfort, the demand will be elastic or in simpler words, the consumers will buy it at the current price, but will not pay if the prices rise because it is not essential for the sustenance of human life. ex Expansive cars, electronic items etc.

Elasticity along linear demand curve[link]

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 appearing in the denominator of the elasticity formula is zero there.^[28] 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.^[29] 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[link]

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where a and c are parameters, and the constant price elasticity is c and Failed to parse (Missing texvc executable; please see math/README to configure.): c\le 0

.

Market structure and the demand curve[link]

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.^[30] 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[link]

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.^[31] 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.^[32]

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[link]

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 )^[33]

Is the demand curve for PC firm really flat?[link]

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 ^[33]

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.^[34] 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.^[35]

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."^[36] 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.

Demand management in economics[link]

Demand management in economics is the art or science of controlling economic or aggregate demand to avoid a recession. Such management is inspired by Keynesian macroeconomics, and Keynesian economics is sometimes referred to as demand-side economics.

See also[link]

• Demand chain
• Demand curve
• Demand schedule
• Derived demand
• Planned obsolescence
• Law of demand
• Law of supply
• Supply (economics)
• Supply-side economics
• Supply and demand
• Utility

Notes[link]

Howard Stern
Stern at WXRK in New York City, 2000
Born	Howard Allan Stern (1954-01-12) January 12, 1954 (age 58) Jackson Heights, New York City, New York, U.S.
Occupation	Radio personality, television host, author, actor, photographer
Years active	1975–present
Political party	Libertarian during 1994 Governor of New York campaign
Spouse	Alison Berns (1978–2001; div.) Beth Ostrosky Stern (2008–present)
Website
www.howardstern.com

Howard Allan Stern (born January 12, 1954) is an American radio personality, television host, author, actor and photographer best known for his radio show which was nationally syndicated from 1986 to 2005. He gained wide recognition in the 1990s where he was labeled a "shock jock" for his outspoken and sometimes controversial style. Stern has been exclusive to Sirius XM Radio, a subscription-based satellite radio service, since 2006. The son of a former recording and radio engineer, Stern wished to pursue a career in radio at the age of five. While at Boston University he worked at the campus station WTBU before a brief stint at WNTN in Newton, Massachusetts.

He developed his on-air personality when he landed positions at WRNW in Briarcliff Manor, WCCC in Hartford and WWWW in Detroit. In 1981, he was paired with his current newscaster and co-host Robin Quivers at WWDC in Washington, D.C. Stern then moved to WNBC in New York City in 1982 to host afternoons until his firing in 1985. He re-emerged on WXRK that year, and became one of the most popular radio personalities during his 20-year tenure at the station. Stern's show is the most-fined radio program, after the Federal Communications Commission (FCC) issued fines to station licensees for allegedly indecent material that totaled $2.5 million. Stern has won Billboard's Nationally Syndicated Air Personality of the Year award eight times, and is one of the highest-paid figures in radio.^[1]

Stern describes himself as the King of All Media for his ventures outside radio. Since 1987, he has hosted numerous late night television shows, pay-per-view events and home video releases. He embarked on a five-month political campaign for Governor of New York in 1994. His two books, Private Parts (1993) and Miss America (1995), spent 20 and 16 weeks respectively on The New York Times Best Seller list. The former was adapted into Private Parts (1997), a biographical comedy film that starred Stern and his radio show staff that earned $41.2 million in domestic revenue. Stern performs on its soundtrack which topped the Billboard 200 chart.

Early life and education[link]

Stern graduated from the College of Public Communications at Boston University in 1976.

Stern was born on January 12, 1954 into a Jewish family who lived in Jackson Heights, Queens in New York City.^[2][3] His parents Ben and Ray (née Schiffman) are children of Austro-Hungarian immigrants, and his sister Ellen is four years older than he.^[2] The family moved to the hamlet of Roosevelt on Long Island in 1955,^[4] where Stern developed an interest in radio at five years of age.^[5] While Ray was a homemaker and later an inhalation therapist,^[6][7] Ben was a co-owner of Aura Recording, Inc., a recording studio in Manhattan where cartoons and commercials were produced.^[8] When he made occasional visits with his father, Stern witnessed actors Wally Cox, Don Adams and Larry Storch voice his favorite cartoon characters,^[9][10] which influenced him to later talk on the air rather than play records.^[11] Ben was also an engineer at WHOM, a radio station in Manhattan.^[8] On completion of sixth grade, Stern left Washington-Rose Elementary School for Roosevelt Junior-Senior High School.^[12] In June 1969, the family moved to nearby Rockville Centre and Stern transferred to South Side High School.^[13]

Stern spent the first two of four years at Boston University in the College of Basic Studies.^[14] In 1973, he started to work at WTBU, the campus radio station where he spun records, read the news, and hosted interviews.^[14] He also hosted a comedy program with three fellow students called The King Schmaltz Bagel Hour.^[15] Stern gained admission to the School of Public Communications in 1974^[16] and earned a diploma in July 1975 at the Radio Engineering Institute of Electronics in Fredericksburg, Virginia which allowed him to apply for a first class FCC radio-telephone license.^[17][18] With the license, Stern made his professional debut at WNTN in Newton, Massachusetts, performing airshift, newscasting and production duties between August and December 1975.^[19] He graduated magna cum laude from Boston University in May 1976 with a degree in Communications^[3][14] and now funds a scholarship at the university.^[20]

Career[link]

Early professional radio career (1976–1981)[link]

After his graduation in 1976, Stern declined an offer to work evenings at WRNW, a progressive rock station in Briarcliff Manor, Westchester County, New York.^[21] He was unsure of his talent, and questioned his future in the professional industry. Stern took creative and media planning roles at Benton & Bowles, a New York advertising agency, followed by a job in selling radio time to advertisers.^[22] He realized the mistake of declining on-air work and contacted WRNW a second time where he agreed to work covering shifts over the Christmas holiday period.^[19][23] Stern was hired full time in 1977 and worked a four-hour midday shift, six days per week a $96 weekly salary.^[17] He subsequently worked as the station's production and program director for an increased salary of $250.^[19][24]

In 1979, Stern spotted an advertisement for a "wild, fun morning guy" at rock station WCCC in Hartford, Connecticut.^[25] He submitted a more outrageous audition tape with Robert Klein and Cheech and Chong records mixed with flatulence routines and one-liners.^[26] Stern was hired with no change in salary with a more intense schedule. After four hours on the air he voiced and produced commercials for another four. On Saturdays, following a six-hour show, he did production work for the next three. As the station's public affairs director he also hosted a Sunday morning talk show which he favoured.^[27] In the summer of the 1979 energy crisis, Stern held a two-day boycott of Shell Oil Company which attracted media attention.^[28] Stern left WCCC a year later after he was declined a pay increase.^[29] Fred Norris, the overnight disc jockey, has been Stern's producer and writer since 1981.^[30]

Management at rock outlet WWWW in Detroit, Michigan praised Stern's audition tape in their search for a new morning man.^[31] Stern was hired for the job which he started on April 21, 1980.^[13] He learned to become more open on the air and "decided to cut down the barriers...strip down all the ego...and be totally honest", he later told Newsday.^[32] His efforts earned him a Billboard award for "Album-Oriented Rock Personality of the Year For a Major Market" and the Drake-Chenault "Top Five Talent Search" title.^[33][34] The station however, ran into problems after Stern's quarterly Arbitron ratings had decreased while it struggled to compete with its stronger rock competitors. In January 1981, WWWW switched to a country music format much to Stern's dislike, who left the station soon after.^[35] He received offers to work at WXRT in Chicago and CHUM in Toronto, but did not take them.^[34][36]

Washington and WNBC New York (1981–1985)[link]

Stern moved to Washington, D.C. to host mornings at rock station WWDC on March 2, 1981.^[37][38] He wanted to develop his show further, and looked for a co-worker with a sense of humor to riff with on news and current events.^[39] The station paired Stern with Robin Quivers, a newscaster and consumer affairs reporter from WFBR in Baltimore.^[40] Though he felt restricted and controlled by management who enforced a strict format, Stern had the second highest rated morning radio program in January 1982.^[41][42] Impressed with his ratings success, NBC approached Stern with an offer to work afternoons at WNBC in New York City. After Stern signed a five-year contract worth $1 million in March,^[43] his relationship with WWDC management worsened,^[44] and his contract with the station was terminated on June 25. He had more than tripled the station's morning ratings during his stay.^[45] In its July issue The Washingtonian named Stern the area's best disc jockey.^[46] Stern released 50 Ways to Rank Your Mother, a comedy album of his radio bits. The record was re-released as Unclean Beaver in November 1994.^[47]

On April 2, 1982, a news report by Douglas Kiker on raunch radio featuring Stern aired on NBC Magazine.^[48] The piece stimulated discussion among NBC management to withdraw Stern's contract. When he began his afternoon program in September,^[49] management closely monitored Stern, telling him to avoid talk of a sexual and religious nature.^[50] In his first month, Stern was suspended for several days for "Virgin Mary Kong", a segment featuring a video game where a group of men pursued the Virgin Mary around a singles bar in Jerusalem.^[48] An attorney was hired to man a "dump button", and cut Stern off the microphone should potentially offensive areas be discussed. This became the task of program director Kevin Metheny, who Stern nicknamed "Pig Virus".^[48] On May 21, 1984, Stern made his first appearance on Late Night with David Letterman, launching him into the national spotlight.^[13] A year later he claimed the highest ratings at WNBC in four years with a 5.7% market share.^[51]

On September 30, 1985, Stern and Quivers were fired for what management termed "conceptual differences" regarding the show.^[52] "Over the course of time, we made a very conscious effort to make Stern aware that certain elements of the program should be changed...I don't think it's appropriate to say what those specifics were",^[53] said program director John Hayes, who Stern nicknamed "The Incubus". In 1992, Stern believed Thornton Bradshaw, chairman of WNBC's owner RCA, heard his "Bestiality Dial-a-Date" segment and ordered his firing.^[50] Stern and Quivers kept in touch with their audience throughout October and November where they toured club venues with a stage show.^[52]

K-Rock, early television endeavors and Fartman (1985–1992)[link]

Stern signed a contract with Infinity Broadcasting worth around $500,000^[54] and returned to afternoons on its New York rock station WXRK on November 18, 1985.^[52] The show moved to mornings on February 18, 1986 and entered national syndication on August 18 when WYSP in Philadelphia first simulcast the program.^[52] In October 1992, Stern became the first to have the number one morning radio show in New York and Los Angeles simultaneously.^[55] In the New York market The Howard Stern Show was the highest-rated morning program for seven consecutive years between 1994 and 2001.^[56] In 1994, Billboard magazine added the "Nationally Syndicated Air Personality of the Year" category to its annual radio awards based on entertainment value, creativity and ratings success.^[57] Stern was awarded the title from 1994 to 2002.^[58][59]

In May 1987, Stern recorded five television pilots for Fox when the network planned to replace The Late Show hosted by Joan Rivers.^[60] The series was never picked up; one executive having described the show as "poorly produced", "in poor taste" and "boring".^[61] Stern hosted his first pay-per-view event on February 27, 1988 named Howard Stern's Negligeé and Underpants Party.^[52] Over 60,000 homes purchased the two-hour special that grossed $1.2 million.^[62] On September 7, 1989, over 16,000 fans packed out Nassau Coliseum for Howard Stern's U.S. Open Sores, a live event that featured a tennis match between Stern and his radio show producer, Gary Dell'Abate.^[52] Both events were released for home video. From 1990 to 1992, Stern was the host of The Howard Stern Show, a Saturday night program on WWOR-TV. The series ran for 69 episodes to 65 markets nationwide.^[63] In February 1991, Stern released Crucified by the FCC, a collection of censored radio segments following the first fine issued to Infinity by the FCC over alleged indecency.^[64] He released a third video tape, Butt Bongo Fiesta, in October 1992 that sold 260,000 copies for a gross of over $10 million.^[64][65] He returned to Saturday night television that November with The Howard Stern "Interview", a one-on-one celebrity interview series on E!.^{[citation needed]}

Stern appeared at the 1992 MTV Video Music Awards as Fartman, a fictional superhero that first appeared in the National Lampoon humor magazine series. According to the trademark he filed for the character that October, he first used Fartman in July 1981.^[66] Stern rejected multiple scripts for a proposed summer 1993 release of The Adventures of Fartman until a verbal agreement was reached with New Line Cinema.^[67] Screenwriter J. F. Lawton had prepared a script before relations soured over the film's rating, content and merchandising rights and the project was abandoned.^[68][69]

[edit] Private Parts, E! show and run for Governor (1993–1994)

In 1993, Stern signed a $1 million advance contract with Simon & Schuster to publish his first book.^[70] Co-authored with Larry Sloman and edited by Judith Regan, the release of Private Parts on October 7 saw its first printing of 225,000 copies being sold within hours of going on sale. It became the fastest-selling title in the history of Schuster after five days.^[71] In its eighth printing two weeks later, over one million copies had been distributed.^[65][70] Stern embarked on a book signing tour that attracted an estimated 10,000 fans at a Barnes & Noble store on Fifth Avenue in New York.^[70] In its first run, Private Parts spent 20 weeks on The New York Times Best-Seller list.^[72] Stern has written forewords for Steal This Dream (1998), a biography of Abbie Hoffman, Disgustingly Dirty Joke Book (1998) by Jackie Martling, Too Fat to Fish (2008) by Artie Lange, and Dear Mrs. Fitzsimmons: Tales of Redemption from an Irish Mailbox (2010) by Greg Fitzsimmons.

Stern hosted his second pay-per-view event, The Miss Howard Stern New Year's Eve Pageant, on December 31, 1993. It broke the subscriber record for a non-sports event previously held by a New Kids on the Block concert in 1990.^[65] Around 400,000 households purchased the event that grossed an estimated $16 million.^[73] Stern released the program on VHS in early 1994 as Howard Stern's New Year's Rotten Eve 1994. Between his book royalties and pay-per-view profits, Stern's earnings in the latter months of 1993 totalled around $7.5 million.^[74] In its 20th anniversary issue in 1993, Radio & Records named Stern the most influential air personality of the past two decades.^[75]

On March 21, 1994, Stern announced his candidacy for Governor of New York under the Libertarian Party ticket, challenging Mario Cuomo for re-election.^[76] He planned to reinstate the death penalty, stagger highway tolls to improve traffic flow, and limit road work to night hours.^[77] At the party's nomination convention in Albany on April 23, Stern won the required two-thirds majority on the first ballot, receiving 287 of the 381 votes cast (75.33%). James Ostrowski finished second with 34 votes (8.92%).^[78] To place his name on the November ballot, Stern was obliged to state his home address and to complete a financial disclosure form under the Ethics in Government Act of 1987. After declining to disclose his financial information, Stern was denied an injunction on August 2.^[79] He withdrew his candidacy two days later. Cuomo was defeated in the gubernatorial election on November 8 by George Pataki, who Stern backed. Pataki signed "The Howard Stern Bill" that limited construction on state roads to night hours in New York and Long Island, in 1995.^[80]

In June 1994, robotic cameras were installed at WXRK studios to film The Howard Stern Show for a condensed half-hour show on E!.^[81] Howard Stern ran for 11 years until the last taped episode aired on July 8, 2005.^[82] In conjunction with his move to satellite radio, Stern launched Howard Stern on Demand, a subscription video-on-demand service, on November 18.^[83] The service was relaunched as Howard TV on March 16, 2006.^[84]

[edit] Miss America and Private Parts film (1995–1997)

On April 3, 1995, three days after the shooting of singer Selena, Stern's comments regarding her death and Mexican Americans caused an uproar in the Hispanic community. He criticized her music and gunfire sound effects were played over her songs. "This music does absolutely nothing for me. Alvin and the Chipmunks have more soul...Spanish people have the worst taste in music. They have no depth".^[85] On April 6, Stern responded with a statement in Spanish, stressing his comments were made in satire and not intended to hurt those who loved her.^[86] A day later, Justice of the Peace Eloy Cano of Harlingen, Texas issued an arrest warrant on Stern for disorderly conduct.^[87]

In 1995, Stern signed a deal with ReganBooks worth $3 million to write his second book, Miss America.^[88] He wrote about his cybersex experiences on the Prodigy service, a private meeting with Michael Jackson, and his suffering with obsessive-compulsive disorder.^[89] Released on November 7, the book sold 33,000 copies at Barnes & Noble stores on the same day which set a new one-day record.^[90] Publishers Weekly reported over 1.39 million copies were sold by the year's end and ranked it the third best-selling book of 1995.^[91] Miss America spent a total of 16 weeks on The New York Times best-seller list.^[72]

Production for a film adaptation of Private Parts began in May 1996 with all shooting complete in four months.^[92] Its premiere was held at The Theatre at Madison Square Garden on February 27, 1997, where Stern performed "The Great American Nightmare" with Rob Zombie.^[93] Making its general release on March 7, Private Parts topped the box office sales in its opening weekend with a gross of $14.6 million, and went on to earn a total of $41.2 million in domestic gross revenue.^[94] The film holds a "fresh" rating on Rotten Tomatoes, a website that aggregates film reviews. 79% of critics gave Private Parts a positive review based on a sample of 48 reviews, with an average score of 6.6 out of 10.^[95] For his performance, Stern won a Blockbuster Entertainment Award for "Favorite Male Newcomer" and was nominated for a Golden Satellite Award for "Best Performance by an Actor in a Motion Picture (Comedy)" and a Golden Raspberry Award for "Worst New Star".^{[citation needed]} The soundtrack to Private Parts sold 178,000 copies in its first week of release, topping the Billboard 200 chart.^[96]

Stern filed a $1.5 million lawsuit against Ministry of Film Inc. in October 1997, claiming it recruited him for a film titled Jane starring Melanie Griffith while knowing it had insufficient funds. Stern, who was unpaid when production ceased, accused the studio of breach of contract, fraud and negligent representation.^[97] A settlement was reached in 1999 with Stern receiving $50,000.^[98]

Return to Saturday night television and productions (1998–2004)[link]

In August 1998, Stern returned to Saturday night television with The Howard Stern Radio Show.^[99] Broadcast across the country on CBS affiliates, it featured radio show highlights along with material unseen in his nightly E! show. The show competed for ratings with comedy shows Saturday Night Live on NBC and MADtv on Fox. Concerned with its risqué content, affiliates began to leave the show after two episodes.^[100] Making its launch on 79 stations on August 22, 1998, this number was reduced to 55 by June 1999.^[101] A total of 84 episodes were broadcast.^{[citation needed]} The final re-run aired on November 17, 2001, to around 30 markets.^[102][103]

In 1994, Stern launched the Howard Stern Production Company for original and joint production and development ventures. He intended to make a film adaptation of Brother Sam, the biography of the late comedian Sam Kinison.^[104] In September 1999, UPN announced the production of Doomsday, an animated science-fiction comedy series executively produced by Stern.^[105] Originally set for a 2000 release, Stern starred as Orinthal, a family dog.^[106] The project was eventually abandoned. From 2000 to 2002, Stern was the executive producer of Son of the Beach, a sitcom which ran for three seasons on FX. In late 2001, Howard Stern Productions was reportedly developing a new sitcom titled Kane.^[107] The pilot episode was never filmed. In 2002, Stern acquired the rights to comedy films Rock 'n' Roll High School (1979) and Porky's (1982). He filed a $100 million lawsuit in March 2003 against ABC and the producers of Are You Hot?, claiming the series was based on his radio segment called "The Evaluators". A settlement was reached on August 7.^[108]

Stern announced in early 2004 of talks with ABC to host a prime time interview special, which never materialized. In August 2004, cable channel Spike picked up 13 episodes of Howard Stern: The High School Years, a second animated series Stern was to executive produce.^[109] On November 14, 2005, Stern announced the completion of episode scripts and 30 seconds of test animations.^[110] Stern eventually gave the project up. In 2007, he explained the episodes could have been produced "on the cheap" at $300,000 each, though the quality he demanded would have cost over $1 million.^[111] Actor Michael Cera was cast as the lead voice.^[112]

[edit] Satellite radio and America's Got Talent (2004–present)

Following Stern's move to Sirius, he assembled the Howard 100 News team.

On October 6, 2004, Stern announced the signing of a five-year contract with Sirius Satellite Radio, a medium free from FCC regulations, that started in January 2006.^[113] His decision to leave terrestrial radio occurred in the aftermath of the controversy surrounding the Super Bowl XXXVIII halftime show in February that caused a crackdown on perceived indecency in broadcasting. The incident prompted tighter control over content by station owners and managers to which Stern felt "dead inside" creatively.^[114] Stern hosted his final broadcast on terrestrial airwaves on December 16, 2005.^[115] During his 20 years at WXRK his show had syndicated in 60 markets^[116][117] across the United States and Canada and gained a peak audience of 20 million listeners.^{[118][119][120]}

With an annual budget of $100 million for all production, staff and programming costs, Stern launched two channels on Sirius in 2005 named Howard 100 and Howard 101. He assembled the Howard 100 News team that covered stories about his show and those associated with it, and a new dedicated studio was constructed at Sirius' headquarters in New York.^[121] On January 9, 2006, the day of his first broadcast, Stern and his agent received 34.3 million shares of stock from the company worth $218 million for exceeding subscriber targets set in 2004.^[122] A second stock incentive was paid in 2007, with Stern receiving 22 million shares worth $82.9 million.^[123]

On February 28, 2006, CBS Radio (formerly Infinity Broadcasting) filed a lawsuit against Stern, his agent and Sirius. The suit claimed Stern had misused CBS broadcast time to promote Sirius for unjust enrichment during the last 14 months of his terrestrial radio contract.^[124][125] In a press conference held hours before the suit was filed, Stern said it was nothing more than a "personal vendetta" against him by CBS president Leslie Moonves.^[126] A settlement was reached on May 25, with Sirius paying $2 million to CBS for control of Stern's 20-year broadcast archives.^[127] In the same month, Time magazine included Stern in its Time 100 list.^[128] He also ranked seventh in Forbes' Celebrity 100 list in June 2006,^[129] and reappeared in 2011 at number 26.^[130]

Stern signed a new contract with Sirius to continue his show for five more years in December 2010.^[131] Following the agreement, Stern and his agent filed a lawsuit against Sirius on March 22, 2011, for allegedly failing to pay stock bonuses promised to them from the past four years while helping the company exceed subscriber growth targets. Sirius said it was "surprised and disappointed" by the suit.^[132] On April 17, 2012, New York Judge Barbara Kapnick "granted a SiriusXM motion for summary judgment, dismissing the lawsuit."^[133]

In May, Stern announced that he would be broadcasting on a reduced schedule, alternating between three-day and four-day working weeks.^[134] On December 15, 2011, Stern announced that he will replace Piers Morgan as a judge for the seventh season of America's Got Talent. Filming will take place in Newark, New Jersey at the New Jersey Performing Arts Center and began in February 2012.^[135]

FCC fines[link]

From 1990 to 2004, the Federal Communications Commission (FCC) has fined owners of radio stations that carried The Howard Stern Show a total of $3.2 million for indecent programming.^[136]

Personal life[link]

Stern and Beth Ostrosky in 2011

Stern married his first wife, Alison (née Berns),^[137] on June 4, 1978 at Temple Ohabei Shalom in Brookline, Massachusetts.^[138] They have three daughters: Emily Beth (b. 1983), Debra Jennifer (b. 1986) and Ashley Jade (b. 1993).^[139] On October 22, 1999, Stern announced their decision to separate.^[140] The marriage ended in 2001 with an amicable divorce and settlement.^[137] In 2000, Stern began to date model Beth Ostrosky Stern, co-host of Casino Cinema from 2004 to 2007.^{[citation needed]} She also frequently appeared in the American edition of FHM.^[141] On February 14, 2007 Stern announced their engagement.^[137] They married on October 3, 2008, at Le Cirque restaurant in New York City.^[142]

While attending Boston University, Stern developed an interest in Transcendental Meditation, which he practices to this day.^[143] He credits it with aiding him in quitting smoking and achieving his goals in radio.^[144] Stern interviewed the late Maharishi Mahesh Yogi, founder of the technique, twice.^{[citation needed]} Stern also plays on the Internet Chess Club, and has taken lessons from chess master Dan Heisman, although he has recently claimed to have quit playing. Howard's latest passion is photography, where he does private shoots for friends and secured his first paid 'gig' shooting a layout for Hamptons magazine in July 2011.^[145][146] Stern has also shot photographs for WHIRL magazine and the North Shore Animal League.^[147][148] Stern is frequently listed among the most influential contemporary Americans. In 2011, he was rated Forbes Magazines' 49th Most Powerful Celebrity.^[149]

Filmography[link]

Films[link]

Home video releases[link]

Television[link]

Discography[link]

Bibliography[link]

• Stern, Howard (1993). Private Parts. Simon & Schuster. ISBN 978-0-671-88016-3. 
• Stern, Howard (1995). Miss America. ReganBooks. ISBN 978-0-06-039167-6. 

References[link]