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• W2752807059 abstract "Knowledge acquisition by consumers is a key process in the diffusion of innovations. However, in standard theories of the representative agent, agents do not learn and innovations are adopted instantaneously. Here, we show that in a discrete choice model where utility-maximising agents with heterogenous preferences learn about products through peers, their stock of knowledge on products becomes heterogenous, fads and fashions arise, and transitivity in aggregate preferences is lost. Non-equilibrium path-dependent dynamics emerge, the representative agent exhibits behavioural rules different than individual agents, and aggregate utility cannot be optimised. Instead, an evolutionary theory of product innovation and diffusion emerges." @default.
• W2752807059 created "2017-09-15" @default.
• W2752807059 creator A5082655469 @default.
• W2752807059 date "2018-09-01" @default.
• W2752807059 modified "2023-09-26" @default.
• W2752807059 title "Fashion, fads and the popularity of choices: Micro-foundations for diffusion consumer theory" @default.
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• W2752807059 doi "https://doi.org/10.1016/j.strueco.2018.06.001" @default.
• W2752807059 hasPublicationYear "2018" @default.
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