CHAOTIC CONSUMPTION PATTERNS IN A SIMPLE 2-D ADDICTION MODEL

Authors
FEICHTINGER G HOMMES C MILIK A
Citation
G. Feichtinger et al., CHAOTIC CONSUMPTION PATTERNS IN A SIMPLE 2-D ADDICTION MODEL, Economic theory, 10(1), 1997, pp. 147-173
Citations number
35
Categorie Soggetti
Economics
Journal title
Economic theory → ACNP
ISSN journal
09382259
Volume
10
Issue
1
Year of publication
1997
Pages
147 - 173
Database
ISI
SICI code
0938-2259(1997)10:1<147:CCPIAS>2.0.ZU;2-9
Abstract
Consumption fluctuations in a simple 2-D addiction model are investiga ted. The behavioural equations of the model are suggested by a related 'rational addiction' model of Becker and Murphy [2]. Our model genera tes erratic, seemingly unpredictable consumption patterns of the addic ted persons. The occurence of chaos is proven by locating a so called horseshoe map in the phase space.