Literature in Demand--论文代写范文精选

相比之下,在下面的essay代写范文将讨论，成功的每一步优化,和有丰富的信息流传递给对方意见，了解所有商品的价值。我们的消费者在复杂环境和使用信息，传达他们决定买什么样的产品。下面的essay代写范文进行简述。

Abstract
Of central interest here is information. Economists have long known that an assumption of perfect information was a strong one, and it has been relaxed in a variety of contexts. Early theoretical relaxations of the perfect information structure were applied to market organization (see Rothschild 1973 for a survey), credit rationing (e.g. Jaffee and Russel 1976; Stiglitz and Weiss 1981) as well as to a general consumer behaviour (e.g. Nelson 1970). But more recently, the consumer’s lack of and need for different types of information have been studied more closely. For example, uncertainty about prices is discussed by Galeotti (2004), who examines the welfare implications of search costs when the distribution of prices is unknown. Similarly to the model presented in this paper, Samuelson (2004) models interdependency among consumers. 

There, consumers observe the actions of relatively successful consumers and use that informationto impute which actions are likely to be good for themselves. In that model consumers are differentially successful, and information flow consists only of agents observing each others’ actions. By contrast, in the model we develop below, agents are successful in optimizing at each step (given their current information), and have a richer information flow in that they pass to each other opinions about the values of all goods. Another important distinction between these two models is that Samuelson models the decision of “how much” to consume, while we model the decision “what” to consume. Our consumers act in complex environment and use information communicated to them in deciding on which product to buy, unlike Samuelson’s consumers who are deciding on the consumption budget based on the information available to them. 

In any situation in which information is imperfect, information acquisition can be valuable. Research in both marketing and psychology stresses the immense importance of information collection for the consumer decision process (Bettman 1971), in that it permits consumers to make better (in the sense of utility-increasing) choices. A large empirical literature shows that people tend to collect information through many different sources, such as the media, sellers or other consumers. However, in a seminal work, Hansen (1972) shows that information received from peers through social networks, is the dominant source of knowledge about goods considering both the information’s reliability and its ability to affect the receiver. Thus, if one wants to understand the influence of external information on consumer decisions, it seems reasonable to concentrate on information coming from peers, rather than from any other external source. 

So, while not denying the importance of other sources of more general external information, in this paper we focus on socially localized peer effects. The view that agents use both internal and external sources of information in making decisions is not new in economics and has been applied to related fields. For example, information cascade models (two canonical papers being Banerjee 1992; and Bikhchandani et al. 1992) consider a population of agents, sequentially making decisions using both public and private information. The interest there is the conditions under which public information can overwhelm private, and the possibility of that creating a suboptimal (aggregate) outcome. In a certain sense, the model presented in this paper is also an information cascade model, but it differs from the conventional models in two ways. First, consumers make repeated choices. 

This allows us to study the effects of the change in internal information driven by the consumption process itself. Second, cascade models agents receive information only about other agents’ actions. In our model they receive (somewhat subjective, though higher bandwidth) information notonly about the current actions of others, but also about available options not chosen. Thus, information about any particular option, even if it is not being taken by any agent, can form a cascade as it flows within the population. Agents use information (which may or may not be cascading) about each of the options to make a choice for one of them. A second literature that relates closely has to do with habit formation. Habit formation in consumption was discussed early by Duesenberry (1949) and Brown (1952). 

These approaches are concerned with the formation of the general habit of consuming, meaning that people form habits to consume in general, rather than the habit of consuming some particular good. More recently, habit formation has been rigorously incorporated into consumer decision models by Abel (1990), Constantinides (1990) and others. These models have been extensively used to explain equity premium and riskfree rate puzzles (Constanides 1990; Otrok et. al. 2002) as well as the stylized fact that higher growth rates lead to the higher savings rates (Carrol and Weil 2000). By contrast to the formation of the general habit of consuming the present paper is concerned with habit formation for isolated products. These are the habits that people develop themselves through the consumption process. One good, and well-studied example would be eating habits. Smith (2004), for example, drawing on empirical literature from a wide variety of behavioural and hard sciences, shows that people acquire very strong eating habits that persist for a long period. He refers here not to the habit of eating generally, but to habits regarding particular foods. He also shows that people are more likely to consume products that they see other people consuming, which is a basic assumption of our model. The marketing and psychology literatures referred to above have shown that friends and neighbours are an important source of information. 

The “externalities in consumption” literature has a similar feature in that externalities are often seen as (spatially or socially) limited in scope. The possibility that interactions can be localized in various dimensions has been raised in other contexts. Scheinkman and Woodford (1994), or Weisbuch and Battiston (2007), for example, examine non-market interactions between consumers and producers; Eshel et al. 1996, and Cowan et al. (1997) look at interactions among consumers. In general, interactions generate feedback loops that affect the decisions of the economic agents. But as noted by Glaeser and Scheinkman (2000) the structure of those interactions can make a significant differences both for the sorts of equilibria that emerge and for the dynamics leading to them. In particular, they show that when interactions are local the economy generates richer dynamic possibil-ities, having multiple equilibria and the possibility of moving from one equilibrium to another. More contextualized work on interactions shows that they can explain certain interesting phenomena in economics or other social sciences, such as the standardization process (e.g. Arthur 1989; Cowan 1991; Eshel et al.1998), waves in consumption across the population classes (Cowan et al. 2004), or contagious justice (Alexander and Skyrms 1999).（essay代写)

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