<p>I just have a question, if you know an example where the consumers form a habit about their consumption in a perfect competition setup. I found this paper by <a href="http://www.federalreserve.gov/pubs/oss/oss4/papers/habitmatlab/habit_aer.pdf" rel="nofollow">Fuhrer</a>, but it does not solve the it in a proper setup.</p>

CC BY-SA 3.0
2015-10-15T17:50:18.370Z
There are many. You will find them under the keyword "habit formation". Also try "keeping up with the Joneses, Economics" for "external" habits.
BB King
CC BY-SA 3.0
2015-10-15T19:07:08.057Z
As BB King (thanks God, there are still people loving blues !) said, there is a huge literature on habit formation. The seminal paper is Heal and Ryder (1973) Review of Economic Studies. You can access to the whole habit formation literature by just looking at the citations made on google scholar :

https://scholar.google.fr/scholar?cites=17691947757299688535&as_sdt=2005&sciodt=0,5&hl=fr
optimal control
CC BY-SA 3.0
2015-10-16T16:58:45.077Z
Thank you already! I was wondering if there is already a textbook example that deals with it on a graduate school level!
OST_EE
<macroeconomics><competition>
Forming of consumption habits in dynamic equilibrium model?
OST_EE
# Forming of consumption habits in dynamic equilibrium model?

(Asked by: username_0 on 2015-10-15)

I just have a question, if you know an example where the consumers form a habit about their consumption in a perfect competition setup. I found this paper by [Fuhrer](http://www.federalreserve.gov/pubs/oss/oss4/papers/habitmatlab/habit_aer.pdf), but it does not solve the it in a proper setup.

**Tags:** macroeconomics, competition

> **Comments:**
> **username_1**: There are many. You will find them under the keyword "habit formation". Also try "keeping up with the Joneses, Economics" for "external" habits.  
> **username_2**: As username_1 (thanks God, there are still people loving blues !) said, there is a huge literature on habit formation. The seminal paper is Heal and Ryder (1973) Review of Economic Studies. You can access to the whole habit formation literature by just looking at the citations made on google scholar :  https://scholar.google.fr/scholar?cites=17691947757299688535&as_sdt=2005&sciodt=0,5&hl=fr  
> **username_0**: Thank you already! I was wondering if there is already a textbook example that deals with it on a graduate school level!  

---

## 0 answers

