Consumption of Values

60 Pages Posted: 2 Dec 2020

See all articles by Itzhak Gilboa

Itzhak Gilboa

Tel Aviv University - Eitan Berglas School of Economics; HEC Paris - Economics & Decision Sciences

Stefania Minardi

HEC Paris - Economics & Decision Sciences

Fan Wang

ESSEC

Date Written: November 19, 2020

Abstract

Consumption decisions are partly influenced by values and ideologies. Consumers care about global warming, child labor, fair trade, etc. Incorporating values into the consumer’s utility function will often violate monotonicity, if consumption hurts values in a way that isn’t offset by hedonic benefits. We distinguish between intrinsic and instrumental values, and argue that the former tend to introduce dis- continuities near zero. For example, a vegetarian’s preferences would be discontinuous near zero amount of animal meat. We axiomatize a utility representation that captures such preferences and discuss the measurability of the degree to which consumers care about such values.

Suggested Citation

Gilboa, Itzhak and Minardi, Stefania and Wang, Fan, Consumption of Values (November 19, 2020). HEC Paris Research Paper No. ECO/SCD-2020-1406, Available at SSRN: https://ssrn.com/abstract=3740458 or http://dx.doi.org/10.2139/ssrn.3740458

Itzhak Gilboa (Contact Author)

Tel Aviv University - Eitan Berglas School of Economics ( email )

P.O. Box 39040
Ramat Aviv, Tel Aviv, 69978
Israel
972-3-640-6423 (Phone)
972-3-640-9908 (Fax)

HEC Paris - Economics & Decision Sciences

Paris
France

Stefania Minardi

HEC Paris - Economics & Decision Sciences ( email )

Paris
France

Fan Wang

ESSEC ( email )

3 Avenue Bernard Hirsch
CS 50105 CERGY
CERGY, CERGY PONTOISE CEDEX 95021
France

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

Paper statistics

Downloads
96
Abstract Views
615
rank
387,674
PlumX Metrics