TY  - JOUR
TI  - The economics of escalation
AU  - D'Orlando, Fabio
AU  - Ricciotti, Sharon
PY  - 2021
PB  - SAGE Publications
LA  - eng
AB  - Escalation is a key characteristic of many consumption behaviors that has not received theoretical attention. This paper aims to propose both a definition and a theoretical treatment of escalation in consumption. We define escalation as a subject's attempt to obtain "more" or engage in consumption behaviors that are "more intense" on a measurable, quantitative or qualitative, objective or subjective, scale (more difficult ski slopes, stronger drugs, harder sex, better restaurants etc.), even if the subject preferred less intense consumption behaviors in the past. Further, this evolution in behavior also occurs if the budget constraint does not change. We will find endogenous and exogenous theoretical microfoundations for escalation in models of hedonic adaptation, desire for novelty, acquisition of consumption skills, rising aspirations, positional effects, and envy. However, we will also discuss the possibility that the tendency to escalate is a specific innate behavior inherent to human nature. Finally, we will propose a preliminary theoretical formalization of such behavior and indicate the possible implications of taking escalation into adequate consideration.  JEL codes: B52, D11, D90, D91, I31
UR  - https://doi.org/10.1177/1043463120985310
DO  - 10.1177/1043463120985310
T2  - Rationality and society
VL  - 33
IS  - 1
SN  - 1461-7358
SN  - 1043-4631
SP  - 106-140
UR  - https://www.pollux-fid.de/r/cr-10.1177/1043463120985310
H1  - Pollux (Fachinformationsdienst Politikwissenschaft)
ER  -