Bad Habits and the Endogenous Timing of Urges

Peter Landry

The Review of Economic Studies, 2019, vol. 86, issue 2, 785-806

Abstract: I present a theory of harmful addiction in which “giving in” to an unwanted urge ($i.e.$ consumption) delays the recurrence of urges in the short-run, but increases their long-run frequency. The theory offers new predictions as to how the frequency, levels, cue-dependence, and temporal consistency of consumption evolve during habituation, while uniquely capturing near-term substitution in demand across time. New welfare implications for restrictions on consumption and on marketing are also addressed.

Keywords: Addiction; Habits; Theory; Urges; Cues (search for similar items in EconPapers)
JEL-codes: D01 D11 D90 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:oup:restud:v:86:y:2019:i:2:p:785-806.

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