What You Want, When You Want It [Archive.org URL]

Why do people choose one thing over another? And why do they stop choosing something at all? Over time, cravings, habits and over-saturation make some things appealing and others less so. Economists have attempted to predict consumer choice by applying a “discounted utility model,” which aims to account for how people’s habits and preferences change. In “Predicting Utility Under Satiation and Habituation,” Professors Manuel Baucells and Rakesh K. Sarin modify the model and show how the important factors of “satiation” and “habituation” affect the often ethereal phenomenon of consumer choice.

Like this content? Why not share it?