Econometrica: Jan 2004, Volume 72, Issue 1
Information‐Based Relative Consumption Effects
https://doi.org/10.1111/j.1468-0262.2004.00479.x
p.
93-118
Larry Samuelson
Preferences exhibit relative consumption effects if a person's satisfaction with their own consumption appears to depend upon how much others are consuming. This paper examines a model of an evolutionary environment in which Nature optimally builds relative consumption effects into preferences in order to compensate for incomplete environmental information.Log In To View Full Content