| Accounting for Tastes Revised Edition Contributor(s): Becker, Gary S. (Author) |
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ISBN: 0674543572 ISBN-13: 9780674543577 Publisher: Harvard University Press OUR PRICE: $37.62 Product Type: Paperback - Other Formats Published: March 1998 Annotation: Economists generally accept as a given the old adage that there's no accounting for tastes. Gary Becker disagrees, and in this new collection he confronts the problem of preferences and values: how they are formed and how they affect our behavior. He observes, for example, that adjacent restaurants, which have roughly the same quality of food and similar prices, may differ greatly in the number of customers they are able to attract. Why is one invariably full, while the other has seats to spare? And why is it that the profits of tobacco companies may rise when consumption falls? The answers to these and many other questions about people's consumption patterns, Becker argues, have to do with the way preferences and values are shaped. Although these are central topics of social behavior, they have never been addressed in a systematic and analytical way. Becker applies the tools of modern economic analysis to just this topic, one that economists have traditionally left out of their models for rational choice. As Becker observes, once people's basic needs for food, shelter, and rest are met, their consumption depends very much on how their tastes are formed - on childhood experiences and on social and cultural influences. For many kinds of behavior, there is a strong positive effect of past behavior on current behavior, and there are strong peer effects. Thus, whether a person currently smokes or uses drugs depends significantly on whether he has smoked or taken drugs in the past. And his choice of music, movies, and books depends to a large extent on what his friends and associates have to say about them. Becker argues that, for a large class of behavior, decisions on what to consume arenot independent of one another but are interdependent. He incorporates past experiences and social influences into preferences or tastes through two basic capital stocks, which he calls personal capital and social capital. At any moment in time, what a person wants depends not only on the menu of goods he can choose from and their prices but also on his current stock of personal and social capital. Behaviors that raise or lower these stocks (trying out the popular new drug, joining on upscale health club) will change his future desires and choices. |
| Additional Information |
| BISAC Categories: - Business & Economics | Consumer Behavior - General - Business & Economics | Economics - Theory - Business & Economics | Marketing - Research |
| Dewey: 658.834 |
| LCCN: 95050824 |
| Physical Information: 0.59" H x 6.38" W x 9.21" (0.84 lbs) 292 pages |
| Descriptions, Reviews, Etc. |
| Publisher Description: Economists generally accept as a given the old adage that there's no accounting for tastes. Nobel Laureate Gary Becker disagrees, and in this lively new collection he confronts the problem of preferences and values: how they are formed and how they affect our behavior. He argues that past experiences and social influences form two basic capital stocks: personal and social. He then applies these concepts to assessing the effects of advertising, the power of peer pressure, the nature of addiction, and the function of habits. This framework promises to illuminate many other realms of social life previously considered off-limits by economists. |
Contributor Bio(s): Becker, Gary S.: - Gary S. Becker was University Professor of Economics and Sociology at the University of Chicago. In 1992, he was awarded the Nobel Prize in Economics. |