BORIS V. KORNEICHUK
THE TRANSFORMATIONAL MODELS OF CONSUMPTION AND PRODUCTION: TOWARDS AN INSTITUTIONAL MICROECONOMICS

1.2. Consumption models with expectation

In this section we shall describe models accounting just one of the three transformational factors of consumption the factor of expectation. The logistic and informational factors are not considered. Thats way, here it makes no difference which utility is meant: rational or emotional.

In paragraph 1.2.1 we investigate a simple transformational model of consumption with expectation. This model uses the modified utility function depending on two independent arguments amount of a product (good) and duration of wait (bad). In paragraph 1.2.2 the simple model is generalized to include any arbitrary number of products. The method used in this case for consumption modeling is quite consistent with traditional microeconomics methodology.

Paragraph 1.2.3 discusses the transformational model of consumption which does not use traditional utility function depending on the amount of a product at all. Instead of this we introduce the concept of the goal achieving which the consumer enjoys a fixed level of utility. The major role in our model is played not by a given utility level, but by irksomeness (disutility) which is involved in the desired goal attaining and depends on duration of wait. We define this model as the simple transformational model of the goal-oriented consumption. In paragraph 1.2.4 this model is generalized to include two resources being used by the consumer: time and money. The irksomeness (cost) function of the consumer plays the key role in this model too