On the arbitrariness of consumption
We discuss a simple model of choices of joint consumption by a working couple who place maintenance of their marriage (relationship) above all else. Any proposal made by one partner seeking to provide maximal utility to the other so as to preserve the marriage, in the case where preferences of partners are unknown, will be accepted. In this sense consumption is arbitrary. In the concluding section, we suggest that while overly simple, this structure may characterize to some degree significant amounts of observed consumption, emphasizing how social arrangements and the value placed on them by individuals can impact on observed economic behaviour.
Year of publication: |
2011
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Authors: | Whalley, John ; Zhang, Shunming |
Published in: |
Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 18.2011, 4, p. 301-304
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Publisher: |
Taylor & Francis Journals |
Saved in:
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