special issue: Variety, growth and demand

Pier Paolo Saviotti

Journal of Evolutionary Economics, 2001, vol. 11, issue 1, 119-142

Abstract: A dynamic model of demand compatible with a changing composition of the economic system is presented in this paper. Consumers are not expected to have completely formed preferences for radically new objects of consumption. Consumers adopt new goods or services ,created by innovation, only if three barriers are overcome: 1) a critical (minimum) level of income, 2) critical human capital, 3) critical fitness. However, even a new good or service with a fitness higher than that of pre-existing ones, will not be immediately adopted. Consumers'.limited knowledge will slow down the rate of adoption of any new good or service.

Keywords: Demand; -; Critical; income; -; Imitation; -; Uncertainty; -; Human; capital (search for similar items in EconPapers)
JEL-codes: D11 O31 (search for similar items in EconPapers)
Date: 2001-01-22
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Citations: View citations in EconPapers (47)

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