Experimental analysis of collective consumption decisions.

This project analyzes group consumption decisions by means of controlled laboratory experiments. In doing so, we adopt the collective model to analyse the group decisions. In addition, we apply nonparametric revealed preference methodology for analysing consumption behaviour; it has been argued that this nonparametric revealed preference methodology is especially useful within an experimental context. Existing studies that use experimental data in combination with nonparametric revealed preference techniques focus on the individual behaviour of single decision makers; we complement these existing studies by focusing on group behaviour. Given the nature of the collective consumption model, our experimental studies will concentrate on the within-household (or within-group) choice mechanics that underlie the observed choice behaviour. Firstly, we want to examine the bargaining process that underlies the observed group consumption. For example, by experimentally manipulating the so-called distribution factors, it is possible to investigate their effect on the bargaining power of different group members. Next, a special focus will be on the collective behaviour of children. For example, we will study the cooperative (efficient) nature of childrens collective decisions. Finally, we will explore the usefulness of the collective model, which was originally presented for analysing the joint behaviour of multiple decision makers, to analyse the behaviour of single decision makers in terms of the multiple selves approach to model individual decision behaviour.

Keywords:Consumption

Disciplines:Applied economics, Economic history, Macroeconomics and monetary economics, Microeconomics, Tourism