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).
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Fatás-Villafranca, F., Saura, D. & Vazquez, F.J. Diversity, persistence and chaos in consumption patterns. J Bioecon 11, 43–63 (2009). https://doi.org/10.1007/s10818-009-9059-8
- Discretionary consumption
- Evolutionary dynamics