ISSN:
1432-1386
Keywords:
Local bifurcation analysis
;
Neimark-Sacker bifurcation
;
Quasiperiodic dynamics
;
Addiction
;
Habit formation
;
C62-D11
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract 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.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01199855