How much and how often: A model of repeated consumption with endogenous consumption frequency

Liqun Liu, Andrew J. Rettenmaier and Thomas R. Saving

Economics Letters, 2011, vol. 110, issue 3, 186-188

Abstract: We study the consumption pattern for a "repeated good" in which individuals choose both consumption frequency and intensity in response to income, price and setup cost. Results include that increased setup costs reduce frequency and increase intensity, and that the effects of a setup cost increase are qualitatively different from those of a price increase or an income reduction.

Keywords: Consumer; choice; Endogenous; consumption; frequency; Setup; cost; Alchian-Allen; Theorem (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (1)

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