Performance of instrumental actions in rats is initially sensitive to postconditioning changes in reward value, but after more extended training, behavior comes to be controlled by stimulus-response (S-R) habits that are no longer goal directed. To examine whether sensitization of dopaminergic systems leads to a more rapid transition from action-outcome processes to S-R habits, we examined perf...

We provide theoretical foundations for several common (nested) representations of intrinsic linear habit formation. Our axiomatization introduces an intertemporal theory of weaning a decision-maker from her habits using the device of compensation. We clarify differences across specifications of the model, provide measures of habit-forming tendencies, and suggest methods for axiomatizing time-no...

Consumption is the principal feature of Iran’s Gross National Production. Therefore, recognizing of factors that influence it is quite crucial. This article, investigates habit formation, durability, relative risk aversion and intertemporal substitution in consumption expenditures of Iranian households. For empirical study, at first, we constructed two weighted portfolio of the main assets re...

We present a basic exogenous growth model with two consumption goods that differ as regards their contributions to environmental pollution. Allowing for habit formation of the polluting good, we show under which conditions habit formation raises the consumption of the clean good relative to the dirty one in the competitive economy. Further, we demonstrate when habit formation generates a lower ...

We propose a preference condition called shifted difference independence to model the reference point dependent measurable time preference. Based on this condition, we axiomatize a general habit formation and satiation model (GHS) to capture both effects of habit formation and satiation. This model allows for a general habit formation function and satiation function that contain the functional ...