Dynamic theory of preferences: Habit formation and taste for variety

Aldo Rustichini and Paolo Siconolfi

Journal of Mathematical Economics, 2014, vol. 55, issue C, 55-68

Abstract: We analyze individual preferences over infinite horizon consumption choices. Our axioms provide the foundation for a recursive representation of the utility function that contains as particular cases the classical Koopmans representation (Koopmans (1960)) as well as the habit formation specification.

Keywords: Time preferences; Taste for variety; Habit formation (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:55:y:2014:i:c:p:55-68

DOI: 10.1016/j.jmateco.2014.10.002

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