2005
DOI: 10.1007/s10824-005-1748-0
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Learning-by-Consuming and the Dynamics of the Demand and Prices of Cultural Goods

Abstract: The major distinctive feature of cultural goods is that consumers must learn how to consume them, implying that preferences should be modelled as intertemporally dependent. The canonical model in the literature uses a habit formation analogy. In this paper, we discuss in detail, though in the simplest setup, a consistent preference structure for that model. Then, we derive the implications for the dynamics of two aggregate equilibrium models, a fixed price model and a flexible price model. The learning-by-cons… Show more

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Cited by 51 publications
(31 citation statements)
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“…The model is based on the seminal work of Stigler and Becker (1977) and presents some analogies with that of Brito and Barros (2005), although it departs from them in two main respects. First, it is devoted to considering consumption behavior during vacations.…”
Section: The Modelmentioning
confidence: 99%
See 1 more Smart Citation
“…The model is based on the seminal work of Stigler and Becker (1977) and presents some analogies with that of Brito and Barros (2005), although it departs from them in two main respects. First, it is devoted to considering consumption behavior during vacations.…”
Section: The Modelmentioning
confidence: 99%
“…In the learning by consuming approach (McCain 1979(McCain , 1981LĂ©vi-Garboua and Montmarquette 1996;Ulibarri 2005;Brito and Barros 2005), consumers are uncertain about their tastes and learn their own subjective preference structures through a process of consumption experiences, which generate either positive or negative feedbacks. Consumers who receive positive feedbacks are more likely to increase future consumption, while those receiving negative feedbacks will consume less.…”
Section: Introductionmentioning
confidence: 99%
“…Brito, Barros and Diniz Machado (2005) concluded consumer's income has positive effect on the cultural consumption, but the Income Elasticity of Demand is a little bit low [5].…”
Section: Literature Reviewmentioning
confidence: 99%
“…The model has been generalised to include the effects of memory (Bentley, Ormerod, Batty 2011), and a spatial dimension (Bentley et al 2014). It is important to note that this modelling approach differs from that based upon the concept of rational addiction with preferences which are learned and are intertemporally dependent (for example, Becker andMurphy 1988, Britto andBarros 2005). In this model, agents are not required to learn preferences over time.…”
Section: Models Of Agent Behaviour Under Uncertaintymentioning
confidence: 99%