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An agent based model of fads

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  • Leonardo Bargigli
  • Filippo Pietrini

Abstract

We examine the dependence of the cyclical fluctuations of demand on specific behavioral attitudes of heterogeneous agents. Extending the model of Tassier (2004), we use simulations to investigate consumption dynamics when agents are inclined both to conformism and distinction, and they use goods as elements of a communication system. Our results challenge the view stating that conspicuous consumption is typical only of a wealthy class and of some positional goods, since in our model there are no assumptions about features of the goods or income distribution.

Suggested Citation

  • Leonardo Bargigli & Filippo Pietrini, 2023. "An agent based model of fads," Working Papers - Economics wp2023_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    • Handle: RePEc:frz:wpaper:wp2023_01.rdf
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    References listed on IDEAS

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    More about this item

    Keywords

    goods cycles; agent based model; sociology of consumption.;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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