Heuristics as Decison Rules - Part I: The Single Consumer
Many consumption prices are highly volatile. It would certainly overburden our cognitive system to fully adjust to all these changes. Households therefore often rely on simple heuristics when deciding what to consume, e.g. in the form of a constant budget share for a specific consumption commodity, like a vocation, or of a constantconsumption amounty for low-cost commodities as food items. Using utility functions we can measure the welfare loss, caused by such heuristics, and to what extent this can be reduced by adaptation.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||2001|
|Contact details of provider:|| Postal: THE FLINDERS UNIVERSITY OF SOUTH AUSTRALIA, DISCIPLINE OF ECONOMICS, BEDFORD PARK, S.A. 5042 ADELAIDE AUSTRALIA.|
Web page: http://www.flinders.edu.au/sabs/business/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fth:flinde:176. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)
If references are entirely missing, you can add them using this form.