Journal of Bioeconomics

, Volume 11, Issue 1, pp 43–63 | Cite as

Diversity, persistence and chaos in consumption patterns

  • Francisco Fatás-Villafranca
  • Dulce Saura
  • Francisco J. Vazquez
Article
First Online:

Abstract

In this paper we present a model from which discretionary consumption dynamics can be analyzed as global properties emerging from the endogenous transformation of a society inhabited by boundedly rational interactive consumers. By considering local and global interactions among consumers, we show that behavioral diversity plays a central role in the evolution of consumption patterns. The analysis of the model reveals the existence of a regime characterized by the persistence of different social standards, and a time evolution of the social distribution of behavioral patterns towards a heteroclinic cycle. In some cases the evolution seems to be chaotic, generating unpredictable, erratic dynamics of the aggregate social indices (average or social propensity for discretionary consumption).

Keywords

Discretionary consumption Externalities Evolutionary dynamics Chaos 

JEL Classification

E21 C61 B52 
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Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

  • Francisco Fatás-Villafranca
    • 1
  • Dulce Saura
    • 1
  • Francisco J. Vazquez
    • 2
  1. 1.Universidad de ZaragozaZaragozaSpain
  2. 2.Universidad Autonoma MadridMadridSpain

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