THE FRAGILE POLITICS OF ADDICTION

Suppose the optimizing consumer only has local information, then what? Obviously, there will be a random element of consumption. The link be tween the frequency distribution of consumption by person and preferen ce surface is worked out. Under convex preferences there will be a uni modal distribution and conversely. A local optimizing theory of addict ive behavior is developed from nonconvex preferences. The resulting bi modal distribution of consumption implies a nonrobust outcome for medi an voter politics. Such a local optimizing model of addiction is compa red with globally optimizing models of addiction.