Does the Consumer Value Diversity? How the Economists' Standard Hypothesis is Being Challenged

in Vecco M. (Ed.), The Consumption of Culture, The Culture of Consumption. A Collection of Contributions on Cultural Consumption and Cultural Markets, Lambert Academic Publishing, p.70-95

12 Pages Posted: 15 Dec 2012 Last revised: 20 Dec 2012

See all articles by Heritiana Ranaivoson

Heritiana Ranaivoson

Vrije Universiteit Brussel (VUB) - IBBT-SMIT

Date Written: December 14, 2012

Abstract

The paper clarifies and goes beyond the standard economic assumption that consumers value diversity. The analysis starts with the explanation of how economists usually assume that consumers value diversity either because they have a personal taste for diversity or because there is a diversity of preferences among them. Economists also put forward the cost of diversity and the consequences of the resulting trade-off between diversity and efficiency. Arguments coming from sociological and psychological perspectives help to overcome the limitations of the traditional economic assumption that consumers make their choice independently and effortlessly. This new framework allows a more complete picture of cultural consumption to emerge.

Keywords: monopolistic competition, determinants of choice, information goods, diversity of consumption

Suggested Citation

Ranaivoson, Heritiana, Does the Consumer Value Diversity? How the Economists' Standard Hypothesis is Being Challenged (December 14, 2012). in Vecco M. (Ed.), The Consumption of Culture, The Culture of Consumption. A Collection of Contributions on Cultural Consumption and Cultural Markets, Lambert Academic Publishing, p.70-95, Available at SSRN: https://ssrn.com/abstract=2189425 or http://dx.doi.org/10.2139/ssrn.2189425

Heritiana Ranaivoson (Contact Author)

Vrije Universiteit Brussel (VUB) - IBBT-SMIT ( email )

Pleinlaan 2
Brussels, 1050
Belgium

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
114
Abstract Views
555
Rank
445,816
PlumX Metrics