TY - JOUR
T1 - Optimal consumption decisions of family networks with similar felicity functions
AU - Palafox-Roca, Alfredo Omar
AU - Rodríguez-Aguilar, Román
AU - Castillo-Ramírez, Claudia Estrella
AU - Venegas-Martínez, Francisco
N1 - Publisher Copyright:
© 2019, Springer Science+Business Media, LLC, part of Springer Nature.
PY - 2020/11/1
Y1 - 2020/11/1
N2 - Family networks have increased at an accelerated pace through social networking through social networking services, online platforms, and social media clubs. This paper develops a model of an economy populated by networks of families with similar preferences (the same functional form of the felicity or utility function) but family members differ in their deep parameters (compulsion for consumption and risk tolerance), which, in turn, leads to some kind o heterogeneity among the families. In this context, the problem of felicity (utility) maximization of the average family in the network is solved. The optimal path of consumption is obtained for the average family and graphical comparative static exercises are performed. Finally, the economic welfare of the typical family in a network is calculated and comparative static experiments are carried out. This approach improves the understanding of the consumption decision making of families interacting in social networking services.
AB - Family networks have increased at an accelerated pace through social networking through social networking services, online platforms, and social media clubs. This paper develops a model of an economy populated by networks of families with similar preferences (the same functional form of the felicity or utility function) but family members differ in their deep parameters (compulsion for consumption and risk tolerance), which, in turn, leads to some kind o heterogeneity among the families. In this context, the problem of felicity (utility) maximization of the average family in the network is solved. The optimal path of consumption is obtained for the average family and graphical comparative static exercises are performed. Finally, the economic welfare of the typical family in a network is calculated and comparative static experiments are carried out. This approach improves the understanding of the consumption decision making of families interacting in social networking services.
KW - Average family
KW - Consumption decisions
KW - Networks of families
KW - Social networks
UR - http://www.scopus.com/inward/record.url?scp=85067965842&partnerID=8YFLogxK
U2 - 10.1007/s11276-019-02063-x
DO - 10.1007/s11276-019-02063-x
M3 - Artículo
AN - SCOPUS:85067965842
SN - 1022-0038
VL - 26
SP - 5703
EP - 5712
JO - Wireless Networks
JF - Wireless Networks
IS - 8
ER -