RT Journal Article
SR 00
ID 10.1007/BF01199855
A1 Feichtinger, G.
A1 Prskawetz, A.
A1 Herold, W.
A1 Zinner, P.
T1 Habit formation with threshold adjustment: Addiction may imply complex dynamics
JF Journal of Evolutionary Economics
YR 1995
FD 1995-06
VO 5
IS 2
SP 157
OP 172
K1 Local bifurcation analysis; Neimark-Sacker bifurcation; Quasiperiodic dynamics; Addiction; Habit formation
AB A time-discrete descriptive model of habit formation is presented. Addictive behaviour is damped by a threshold which adapts itself to the habit. This simple framework is able to explain periodic, quasi-periodic as well as chaotic consumption patterns of addictive consumers. It turns out that both a high adjustment rate and a steep consumption function favour complex (chaotic) patterns.
PB Springer
SN 1432-1386
LK https://pure.iiasa.ac.at/id/eprint/4263/