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Information-Based Relative Consumption Effects


  • 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. Copyright Econometric Society 2004.

Suggested Citation

  • Larry Samuelson, 2004. "Information-Based Relative Consumption Effects," Econometrica, Econometric Society, vol. 72(1), pages 93-118, January.
  • Handle: RePEc:ecm:emetrp:v:72:y:2004:i:1:p:93-118

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    References listed on IDEAS

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