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Testing evolutionary theory of household consumption behavior in the case of novelty - a product characteristics approach

Author

Listed:
  • Kenza Qaoumi

    () (CGS - The Center for Management Science, MINES ParisTech)

  • Pascal Masson

    (CGS - The Center for Management Science, MINES ParisTech)

  • Benoit Weil

    (CGS - The Center for Management Science, MINES ParisTech)

  • Aytunç Ün

    (CGS - The Center for Management Science, MINES ParisTech)

Abstract

Abstract This article tests and extends the evolutionary theory of household consumption behavior, which is an alternative to neoclassical theory. Evolutionary economists offer novel approaches to the analysis of consumption behavior that emphasize the major role of learning in the evolution of consumer preferences and wants. As a possible inspiration for further progress in evolutionary thought, this paper examines the idea of consumer learning by studying the nature of what consumers should learn in the context of ‘novelty’. Our empirical results regarding novelty during the learning process show that consumers learn the ‘new characteristics’ of consumer goods, contrary to the Lancasterian approach, which suggests that the characteristics space of goods is fixed. We show that during the process of consumption, ‘consumer learning’ extends the characteristics space of consumer goods; this phenomenon is far from negligible and differs across product types. Moreover, our results show that the emergence of new characteristics cannot be modeled as a Poisson process because these new characteristics exhibit clear interdependence over time.

Suggested Citation

  • Kenza Qaoumi & Pascal Masson & Benoit Weil & Aytunç Ün, 2018. "Testing evolutionary theory of household consumption behavior in the case of novelty - a product characteristics approach," Journal of Evolutionary Economics, Springer, vol. 28(2), pages 437-460, April.
  • Handle: RePEc:spr:joevec:v:28:y:2018:i:2:d:10.1007_s00191-017-0521-9
    DOI: 10.1007/s00191-017-0521-9
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    References listed on IDEAS

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    More about this item

    Keywords

    Evolutionary economics; Novelty; Household consumption behavior; Innovation; Consumer learning;

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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