Work detail

Model of Consumer Behaviour

Author: Mgr. Jana Honzáková
Year: 2003 - summer
Leaders: doc. Ing. Tomáš Cahlík CSc.
Consultants:
Work type: Economic Policy
Masters
Language: Czech
Pages: 82
Awards and prizes: M.A. with distinction from the Dean of the Faculty of Social Sciences for an excellent state-final examination performance
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Abstract: The paper is based on postkeynesian theory of choice, which is built on procedural rationality.
On the basis of this theory we present a model describing behaviour of a group of consumers. The main principle of this model is a series of repeating cycles; in every cycle each individual customer obtains an income, which is immediately spent on some (randomly chosen) good. These expenses are used for calculation of probabilities of individual expenses in the following cycle. We assume that this influence is stronger between the consumers with the same income level or with the same kind of job and weaker between unrelated consumers.
The model was applied on real data -- households of employees in the Czech Republic ----- and we examined how convergence of probabilities of expenses depends on the level of the influence between consumers. Finally we added into the model an exogenous shock and focused on its impact on probabilities.

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