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Consumer behavior and the aspiration for conformity and consistency

Author

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  • Goebel, Markus

    () (Helmut Schmidt University, Hamburg)

  • Schneider, Andrea

    () (Helmut Schmidt University, Hamburg)

  • Thomas, Tobias

    () (Helmut Schmidt University, Hamburg)

Abstract

The (socio-)psychological concepts of individual aspiration for con- formity and consistency are integrated into the rational-choice frame- work. By using this integrative approach it is shown that after a shock the aspiration for conformity results in an equilibrium which deviates from the homo oeconomicus' behavior towards the consumption of the peer group, whereas the aspiration for consistency leads to the result that the equilibrium consumption is not reached at once. Combining these eÃÂîects a new consumption path is derived. After a shock the individual consumption converges step-by-step to the new equilibrium consumption.

Suggested Citation

  • Goebel, Markus & Schneider, Andrea & Thomas, Tobias, 2007. "Consumer behavior and the aspiration for conformity and consistency," Working Paper 57/2007, Helmut Schmidt University, Hamburg.
  • Handle: RePEc:ris:vhsuwp:2007_057
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    Cited by:

    1. Thomas Tobias & Heß Moritz & Wagner Gert G., 2017. "Reluctant to Reform? A Note on Risk-Loving Politicians and Bureaucrats," Review of Economics, De Gruyter, vol. 68(3), pages 167-179, December.

    More about this item

    Keywords

    Consumer behavior; consistency; conformity; habit persistence; step-by-step adaptation;

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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