A Possible Utility-based Explanation of Deaton's Paradox (and Habits of Mind)

What is Deaton's paradox. Angus Deaton, the winner of the 2015 Nobel Prize in Economics, became well-known after his seminal 1989 paper [1]. This paper of Deaton empirically analyzed how consumption depends on income level. Until this study, it was believed that when the income increases, the consumption increases as well. The paper [1] showed that, contrary to this belief, an increase in income does not immediately lead to an increase in consumption. The increase in consumption does follow, but after some delay. As a result, even when the income changes abruptly, the resulting change in consumption is much smoother. This counterintuitive behavior is known as Deaton's paradox.