%A G. Feichtinger
%A A. Prskawetz
%A W. Herold
%A P. Zinner
%J Journal of Evolutionary Economics
%T Habit formation with threshold adjustment: Addiction may imply complex dynamics
%X 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.
%N 2
%K Local bifurcation analysis; Neimark-Sacker bifurcation; Quasiperiodic dynamics; Addiction; Habit formation
%P 157-172
%V 5
%D 1995
%I Springer
%R 10.1007/BF01199855
%L iiasa4263