Idiosyncratic Learning, Creative Consumption and Well-Being

Abstract

The consensus view is that economists should observe consumer choices and abstain from investigating the psychological and physiological causes of wants, or the mechanisms governing the formation of preferences. This may be a correct procedure as far as ordinary functional goods are concerned. Problems tend to arise with creative goods (e.g. cultural goods) whose consumption (i) requires skills acquired through education and experience and (ii) generates positive and negative feedbacks and learning-by-consuming processes. This paper presents a simple model of local learning explaining the idiosyncratic accumulation of consumption human capital. Consumption generates local feedback mechanisms whose characteristics depend on the nature of goods and on the type of agent. The model provides some insights on the microeconomics of creative consumption and on the specific role of education.

Citation

Di Giacinto, M. and Ferrante, F. (2007), "Idiosyncratic Learning, Creative Consumption and Well-Being", Bianchi, M. (Ed.) The Evolution of Consumption: Theories and Practices (Advances in Austrian Economics, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 41-73. https://doi.org/10.1016/S1529-2134(07)10003-X