Consumption modelling using categorisation-enhanced mental accounting
dc.contributor.author | Chudziak, Szymon | |
dc.date.accessioned | 2023-07-21T08:47:27Z | |
dc.date.available | 2023-07-21T08:47:27Z | |
dc.date.issued | 2023-07 | |
dc.identifier.citation | Chudziak Sz., Consumption modelling using categorisation-enhanced mental accounting, SGH KAE Working Papers Series, 2023, nr 2023/090, s.1-60 | en |
dc.identifier.uri | http://hdl.handle.net/20.500.12182/1093 | |
dc.description.abstract | Credibly representing category-of-goods mental accounting in an intertemporal optimisation framework is notoriously difficult, as this modelling approach imposes interrelations between the demand for different categories through first-order conditions. This breaks the principle of nonfungibility, contrary to the rationale of mental-accounting theory. Proofs that using intertemporal optimisation is futile in modelling this kind of behaviour are provided, and an alternative is developed: a procedural-behavioural merger of mental accounting and categorisation theories. The merger is necessary to enhance mental-accounting theory, which by itself does not inform about how mental budgets are formed, what they include and how money is spent from various accounts. A classification of six basic consumer types was devised, basing on the differences between their mental-accounting systems and variations of changes of expenditure in response to variations of net disposable income and other possible stimuli. Representing the consumer problem as a behavioural procedure including spending on nondurable and frequently-bought durable goods and decisions whether or not to purchase very expensive durable goods, such as houses and flats, allows to model real-world features such as infrequent purchases and rare debt-taking. The devised working-life cycle models of consumer behaviour are consistent with microeconomic evidence on consumption, including those features that are not accounted for by various versions of the permanent income or buffer-stock models. | en |
dc.language.iso | en | |
dc.rights | Dozwolony użytek | * |
dc.subject | mental accounting | en |
dc.subject | consumption | en |
dc.subject | consumer choice | en |
dc.subject | behavioural economics | en |
dc.subject | agent-based computational economics | en |
dc.subject | simulation models | en |
dc.subject.classification | D90 | en |
dc.subject.classification | D91 | en |
dc.subject.classification | D11 | en |
dc.subject.classification | D15 | en |
dc.subject.classification | D14 | en |
dc.title | Consumption modelling using categorisation-enhanced mental accounting | en |
dc.type | workingPaper | en |
dc.description.number | 2023/090 | en |
dc.description.physical | 1-60 | en |
dc.description.series | SGH KAE Working Papers Series | en |
dc.identifier.urlpublisher | http://wydawnictwo.sgh.waw.pl | en |
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