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Information-Based Relative Consumption Effects

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Author Info
Larry Samuelson
Abstract

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. Copyright Econometric Society 2004.

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File URL: http://hdl.handle.net/10.1111/j.1468-0262.2004.00479.x
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Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 72 (2004)
Issue (Month): 1 (01)
Pages: 93-118
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Handle: RePEc:ecm:emetrp:v:72:y:2004:i:1:p:93-118

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