Dynamic theory of preferences: Habit formation and taste for variety

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.

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Year of publication:	2014
Authors:	Rustichini, Aldo ; Siconolfi, Paolo
Published in:	Journal of Mathematical Economics. - Elsevier, ISSN 0304-4068. - Vol. 55.2014, C, p. 55-68
Publisher:	Elsevier
Subject:	Time preferences \| Taste for variety \| Habit formation

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011118009