Journal article
Habit persistence, heterogeneous tastes, and imperfect competition
Journal of economic dynamics & control, Vol.20(6-7), pp.1193-1207
06/01/1996
DOI: 10.1016/0165-1889(95)00895-0
Abstract
We examine the dynamic behavior of consumption and price in a setting where imperfectly competitive producers face consumers with various intensities of rational habit persistence. We establish that steady-state consumption and its persistence rate are lower under time-consistent monopoly than under either competition or monopoly commitment. Under both competition and monopoly commitment, the steady-state level and the transient path of consumption are unaffected by the relative mix of consumer types. In the consistent case, both the persistence rate and steady-state consumption decrease as the proportion of habitual consumers increases.
Details
- Title: Subtitle
- Habit persistence, heterogeneous tastes, and imperfect competition
- Creators
- Gary Fethke - University of IowaRaj Jagannathan - University of Iowa
- Resource Type
- Journal article
- Publication Details
- Journal of economic dynamics & control, Vol.20(6-7), pp.1193-1207
- DOI
- 10.1016/0165-1889(95)00895-0
- ISSN
- 0165-1889
- eISSN
- 1879-1743
- Number of pages
- 15
- Language
- English
- Date published
- 06/01/1996
- Academic Unit
- Business Analytics
- Record Identifier
- 9984962548702771
Metrics
1 Record Views