Cumulative Utility and Consumer Theory - HEC Paris - École des hautes études commerciales de Paris Access content directly
Journal Articles International Economic Review Year : 1997

Cumulative Utility and Consumer Theory


This paper makes some preliminary steps towards a dynamic theory of consumer choices, restricted to the case of repeated small decisions. The authors assume that the consumer chooses among products, rather than among bundles, and that she bases her decision on a cumulative satisfaction index. The (instantaneous) utility of a product is closely related to the relative frequency with which it is consumed. The aggregation of choices among products implicitly defines a choice of a bundle. The authors propose to incorporate a product's price directly into its utility and show that it is consistent with balancing the consumer's budget. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
No file

Dates and versions

hal-00753137 , version 1 (17-11-2012)


  • HAL Id : hal-00753137 , version 1


Itzhak Gilboa, David Schmeidler. Cumulative Utility and Consumer Theory. International Economic Review, 1997, vol. 38, issue 4, pp. 737-761. ⟨hal-00753137⟩


162 View
0 Download


Gmail Facebook X LinkedIn More