Endogenous reactivity in a dynamic model of consumer's choice
type: Item
instance of: scholarly article
title: Endogenous reactivity in a dynamic model of consumer's choice
zbMATH Open document ID: 1244.91057
DOI: 10.1155/2012/908451
author: Ahmad K. Naimzada
author: Fabio Tramontana
published in: Discrete Dynamics in Nature and Society
publication date: 2012-08-14T00:00:00Z
review text: Summary: We move from a boundedly rational consumer model characterized by a gradient-like decisional process in which, under particular parameters conditions, the asymptotical convergence to the optimal choice does not happen but it does under a least squared learning mechanism. In the present paper, we prove that even a less sophisticated learning mechanism leads to convergence to the rational choice and also prove that convergence is ensured when both learning mechanisms are available. The stability results that we obtain give more strength to the rational behavior assumption of the original model; in fact, the less demanding is the learning mechanism ensuring convergence to the rational behavior, the higher is the probability that even quite naive consumers will learn the composition of their optimum consumption bundles.
Mathematics Subject Classification ID: 91B42
Mathematics Subject Classification ID: 37N40
zbMATH DE Number: 6065455
zbMATH Keywords: endogenous reactivity
zbMATH Keywords: boundedly rational consumer model
Wikidata QID: Q58700841
describes a project that uses: KELLEY
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2012/908451
OpenAlex ID: W1971005991
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description: scientific article; zbMATH DE number 6065455