Consumer behaviour: evolution of preferences and the search for novelty

Garcia, Abraham (2009). Consumer behaviour: evolution of preferences and the search for novelty. UNU-MERIT.

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UNU-MERIT Working Papers

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  • Author Garcia, Abraham
    Title Consumer behaviour: evolution of preferences and the search for novelty
    Publication Date 2009
    Publisher UNU-MERIT
    Abstract Evolution of consumers' preferences has been recognized by many scholars as being key to understanding technological change. However, mainstream economics cannot account for the seemingly irrational behavior of consumers based on changes in taste – consumer theory lacks exibility and accuracy to explain changes in consumer behavior. Adopting a behavioral psychology perspective, this paper argues that there is a rational pattern in the change of consumers' tastes. I argue that behavioral psychology offers us a unique perspective to solve some of the paradoxes of consumer behavior. This paper incorporates exibility into CES utility function to more adequately account for, and differentiate between, habit formation routines. A model is developed in which habit formation and consumption of new goods are interrelated.
    Copyright Holder UNU-MERIT
    Copyright Year 2009
    ISSN 1871-9872
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    Created: Wed, 11 Dec 2013, 16:24:14 JST