ECN 340 Study Guide - Final Guide: Gary Becker, Habituation
7 Dec 2015
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Habitual behaviour: a positive relationship between past and current consumption. Another way of looking at it is that past and current consumption are compliments. Examples of habits: heroin usage, jogging, attending church. If you don"t use heroin, you can"t become habituated, you don"t long for a smoke. Example of complementarity between current and past consumption: the more i smoked in the past, the more i enjoy smoking now. Habits are harmful if present consumption lowers future satisfaction. Ex: smoking now, later on has the risks of cancer, creating a shorter life. You can develop a habit for a person; addicted to my wife. Habits are beneficial if they raise future utility ex: physical activity, raises future utility. Very strong habits more likely to be harmful then beneficial. Ex: strong habits of gym versus heroin addiction. A persistence of a habit requires that past consumption raises the satisfaction of present consumption.
