THE FRAGILE POLITICS OF ADDICTION

In: Public choice, Band 81, Heft 3, S. 263-276

Abstract

SUPPOSE THE OPTIMIZING CONSUMER ONLY HAS LOCAL INFORMATION, THEN WHAT? OBVIOUSLY, THERE WILL BE A RANDOM ELEMENT OF CONSUMPTION. THE LINK BETWEEN THE FREQUENCY DISTRIBUTION OF CONSUMPTION BY PERSON AND PREFERENCE SURFACE IS WORKED OUT. UNDER CONVEX PREFERENCES THERE WILL BE A UNIMODAL DISTRIBUTION AND CONVERSELY. A LOCAL OPTIMIZING THEORY OF ADDICTIVE BEHAVIOR IS DEVELOPED FROM NONCONVEX PREFERENCES. THE RESULTING BIMODAL DISTRIBUTION OF CONSUMPTION IMPLIES A NONROBUST OUTCOME FOR MEDIAN VOTER POLITICS. SUCH A LOCAL OPTIMIZING MODEL OF ADDICTION IS COMPARED WITH GLOBALLY OPTIMIZING MODELS OF ADDICTION.