Memorable consumption

• 成果类型: Article
• 署名作者: Gilboa, Itzhak; Postlewaite, Andrew; Samuelson, Larry
• 署名单位: Tel Aviv University; Hautes Etudes Commerciales (HEC) Paris; University of Pennsylvania; Yale University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2016.05.004
• 发表日期: 2016
• 页码: 414-455
• 关键词: Memorable goods; consumption volatility; consumption smoothing

摘要

People often consume non-durable goods in a way that seems inconsistent with preferences for smoothing consumption over time. We suggest that such patterns of consumption can be better explained if one takes into account the future utility flows generated by memorable consumption goods goods, such as a honeymoon or a vacation, whose utility flow outlives their physical consumption. We consider a model in which a consumer enjoys current consumption as well as utility generated by earlier memorable consumption. Lasting utility flows are generated only by some goods, and only when their consumption exceeds customary levels by a sufficient margin. We offer axiomatic foundations for the structure of the utility function and study optimal consumption in a dynamic model. We show that rational consumers, taking into account future utility flows, would make optimal choices that rationalize lumpy patterns of consumption. (C) 2016 Elsevier Inc. All rights reserved.