Advertisement

Journal of Bioeconomics

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

Diversity, persistence and chaos in consumption patterns

  • Francisco Fatás-VillafrancaEmail author
  • Dulce Saura
  • Francisco J. Vazquez
Article

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 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Aguiar, M., Castro, S., & Laboriau, I. (2004). Dynamics near a heteroclinic network. Preprint, Centro de Matemática da Universidade do Porto.Google Scholar
  2. Aversi R., Dosi G., Fagiolo G., Meacci M., Olivetti C. (1999) Demand dynamics with socially evolving preferences. Industrial and Corporate Change 8: 353–399CrossRefGoogle Scholar
  3. Baudrillard, J. (1981). For a critique of the political economy of the signs. St. Louis: Telos Press.Google Scholar
  4. Becker G.S. (1996) Accounting for tastes. Harvard University Press, CambridgeGoogle Scholar
  5. Bernheim B.D. (1994) A theory of conformity. Journal of Political Economy 102(5): 841–877CrossRefGoogle Scholar
  6. Bourdieu P. (1979) La Distinction. Minuit, ParisGoogle Scholar
  7. Brannath W. (1994) Heteroclinic networks on the tetrahedron. Nonlinearity 7: 1367–1384CrossRefGoogle Scholar
  8. Chawanya T. (1995) A new type of irregular motion in a class of game dynamics systems. Progress of Theoretical Physics 94: 163–179CrossRefGoogle Scholar
  9. Corneo G., Jeanne O. (1999) Segmented communication and fashionable behavior. Journal of Economic Behavior & Organization 39: 371–385CrossRefGoogle Scholar
  10. Cowan R., Cowan W., Swann P. (1997) A model of demand with interactions among consumers. International Journal of Industrial Organization 15: 711–732CrossRefGoogle Scholar
  11. Deaton A. (1992) Understanding consumption. Oxford University Press, OxfordCrossRefGoogle Scholar
  12. Earl P.E. (1986) Lifestyle economics: Consumer behavior in a turbulent world. Brighton, WheatsheafGoogle Scholar
  13. Earl P.E. (1998) Consumer goals as journeys into the unknown. In: M. Bianchi (eds) The active consumer. Routledge, LondonGoogle Scholar
  14. Granovetter M., Soong R. (1986) Threshold models of interpersonal effects in consumer demand. Journal of Economic Behavior and Organization 7: 83–99CrossRefGoogle Scholar
  15. Gualerzi D. (2001) Consumption and growth: Recovery and structural change in the US Economy. Cheltenham, Edward ElgarGoogle Scholar
  16. Guckenheimer J., Worfolk P. (1992) Instant chaos. Nonlinearity 5: 1211–1222CrossRefGoogle Scholar
  17. Hodgson G. (2000) The hidden persuaders. Institutions and choice in economic theory. University of Hertfordshire, Inaugural LectureGoogle Scholar
  18. Hofbauer J., Sigmund K. (1998) Evolutionary games and population dynamics. Cambridge University Press, CambridgeGoogle Scholar
  19. Lancaster K.J. (1966) A new approach to consumer theory. Journal of Political Economy 4: 132–157CrossRefGoogle Scholar
  20. Langlois, R. N. (2001). Knowledge, consumption and endogenous growth. Journal of Evolutionary Economics, 11.Google Scholar
  21. Leiss, W. (1983). The icons of the market place. Theory, Culture and Society, 1(3).Google Scholar
  22. Loasby B. (2001) Cognition, imagination and institutions in demand creation. Journal of Evolutionary Economics 11: 7–21CrossRefGoogle Scholar
  23. Melbourne I. (1991) An example of a non-asymptotically stable attractor. Nonlinearity 4: 835–844CrossRefGoogle Scholar
  24. Metcalfe S. (2001) Consumption, preferences and the evolutionary agenda. Journal of Evolutionary Economics 11: 37–58CrossRefGoogle Scholar
  25. Schor J. (1999) The overspent American. Harper Perennial, New YorkGoogle Scholar
  26. Scitovsky T. (1976) The joyless economy. An inquiry into human satisfaction and consumer dissatisfaction. Oxford University Press, OxfordGoogle Scholar
  27. Simon H.A. (1983) Reason in human affairs. Stanford University Press, StanfordGoogle Scholar
  28. Sobel E. (1982) Lifestyle. Academic Press, New YorkGoogle Scholar
  29. Stigler G.J., Becker G.S. (1977) De gustibus non est disputandum. American Economic Review 67: 76–90Google Scholar
  30. Turab R., Abu S., Sethi R. (1998) Novelty, imitation and habit formation in a Scitovskian model of consumption. In: Bianchi M. (eds) The active consumer. Routledge, LondonGoogle Scholar
  31. Veblen T. (1899) The theory of the leisure class. Macmillan, LondonGoogle Scholar
  32. Witt, U. (eds) (2001) Escaping satiation. The demand side of economic growth. Springer-Verlag, BerlinGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC. 2009

Authors and Affiliations

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

Personalised recommendations