Work

Group Consumption with Caring Individuals

Year: 2019

Type: article

Abstract: We propose a novel approach to model joint consumption decisions of individuals who care for each other. The model encompasses a continuum of group consumption models situated between the fully co-operative model and the non-cooperative model without caring. We also define a measure for the degree of intragroup cooperation that quantifies how close the observed group behaviour is to fully co-operative behaviour. Following a revealed preference approach, we derive testable implications of the model for empirical data. We use our model to analyse decisions made by children in an experimental setting.

Source: The Economic Journal

DOI: 10.1093/ej/uez052

Authors: Laurens Cherchye, Sam Cosaert, Thomas Demuynck, Bram De Rock

Institutions: KU Leuven, Luxembourg Institute of Socio-Economic Research, Université Libre de Bruxelles

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Safety Research

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2769166706

FWCI: 0.874

Cites: 85

Cited by: 13

Related to: 10