Chaotic consumption patterns in a simple2-D addiction model

Consumption fluctuations in a simple 2-D addiction model are investigated. The behavioural equations of the model are suggested by a related `rational addiction' model of Becker and Murphy [2]. Our model generates erratic, seemingly unpredictable consumption patterns of the addicted persons. The occurence of chaos is proven by locating a so called horseshoe map in the phase space.

MoreLess

Year of publication:	1997
Authors:	Feichtinger, Gustav ; Hommes, Cars ; Milik, Alexandra
Published in:	Economic Theory. - Springer. - Vol. 10.1997, 1, p. 147-173
Publisher:	Springer

More details

Extent:	application/pdf application/postscript
Type of publication:	Article
Notes:	Received: April 4, 1994; revised version March 25, 1996
Classification:	E32 - Business Fluctuations; Cycles ; D11 - Consumer Economics: Theory ; C60 - Mathematical Methods and Programming. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005597846