Waves in consumption with interdependence among consumers

Robin Cowan, William Cowan and G.M. Peter Swann

Canadian Journal of Economics, 2004, vol. 37, issue 1, 149-177

Abstract: In this paper we model the development of consumption when there are interactions between consumers. The consumer recognizes three reference groups: peer, distinction, and aspiration. The interplay of aspiration and distinction can lead to `waves' in consumption; for example, the avant-garde consumption of up-market pioneers is copied by other types of consumer. As the latter aspire to emulate the former, the former seek distinction by varying their consumption. A consumption activity may start up market, then gradually descend the social spectrum. More complex patterns with continuing cycles in consumption can also be found.

JEL-codes: D11 D62 (search for similar items in EconPapers)
Date: 2004
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Citations: View citations in EconPapers (17)

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Journal Article: Waves in consumption with interdependence among consumers (2004)
Working Paper: Waves in consumption with interdependence among consumers (2004)
Working Paper: Waves in Consumption with Interdependence among Consumers (1998)
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