ECN 340 Lecture Notes - Lecture 3: Church Attendance
19 Apr 2018
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Document Summary
Habitual behaviour: a positive relationship between past and current consumption: the more you consumed of something in the past the more you will consume it now. Another way of looking at it is hat past and current consumption are compliments. Examples of habits: using heroin, jogging, attending religious institutions (e. g. church) Example of complementarity between current and past consumption: the more i smoked i the past, the more i enjoy smoking now. Habits are harmful if present consumption lowers future satisfaction e. g. drugs. Habits are beneficial if greater present consumption raises future utility: regular physical exercise, church attendance. Very strong habits are more likely to be harmful than beneficial. A persistence of a habit requires that past consumption raises the satisfaction of present consumption. Listening to a song in the past, brings you pleasure. Past and behaviour: habits and preferences formed during childhood can persist a lifetime; e. g. brushing your teeth.
