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

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.

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Year of publication:	2011
Authors:	Liu, Liqun ; Rettenmaier, Andrew J. ; Saving, Thomas R.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 110.2011, 3, p. 186-188
Publisher:	Elsevier
Keywords:	Consumer choice Endogenous consumption frequency Setup cost Alchian-Allen Theorem

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

Persistent link: https://ebvufind01.dmz1.zbw.eu/10008866832