A Behavioral Foundation of Satiation and Habituation

Tastes change over time. People’s tastes are distorted through two channels: satiation formation and habit formation. In this paper, we develop a theoretical foundation of habituation by an axiomatic approach. Our theory is based on hierarchy preference conditions called compensation independence. The behavioral assumption underlying the psychological human beings. I flesh out system for general models formation, which contains many functional forms in literature as special cases. Moreover, advance axiomatization to accommodate linear representations that prevailing literature. This paper contributes birth new generation modeling might improve current state art understanding people’s time preferences. Theoretically, study vein time-nonseparable