The neural circuits involved in learning and executing goal-directed actions, which are governed by action-outcome contingencies and sensitive to changes in the expected value of the outcome, have been shown to be different from those mediating habits, which are less dependent on action-outcome relations and changes in outcome value. Extended training, different reinforcement schedules, and sub...

This paper studies a model where consumption has two components, one that is costlessly adjustable and one that involves an adjustment cost. Agents have time-separable neoclassical preferences over the two components of consumption. We show that aggregating over a heterogeneous population of such agents implies dynamics identical to those of a representative consumer economy with habit formatio...

Lemma 23. ∀ T ∈ N, x̄ = (x0, x1, . . . , xT ) ∈ R, ∃ hx̄,T ∈ H such that (x0, x1, . . . , xT , 0, 0, . . .) ∈ C∗ hx̄,T+1 . Proof. For arbitrary h, define c by c0 = x0+φ(h), c h t = xt+φ(hc h 0c h 1 · · · ct−1) for all 1 ≤ t ≤ T , and ct = φ(hc0c1 · · · ct−1) for t > T . φ is strictly increasing, so we may choose hx̄,T ∈ H sufficiently large so that (c hx̄,T 0 , c hx̄,T 1 , . . . c hx̄,T T ) is nonnega...

Research on Information Systems (IS) habit formation has been focused mostly on IS habit’s effect on IS continuance. Antecedents of IS habit formation, as reported in the literature, are primarily on users’ prior behavior and comprehensiveness of usage. Most of the literature focus on analyzing the relationship between users’ IS usage behavior and IS habit. Limited work has been reported to inv...

This paper explores the theoretical linkage between habit and the environment through environmentally harmful consumption affected by habitual behavior. It is shown that habit formation of consumption has both negative and positive effects on environmental quality. Whether the positive effect dominates the negative one depends on the degrees of habit formation and environmental externalities. C...

We develop a model that parsimoniously captures habit formation, projection bias, and present bias in an intertemporal-choice setting, and conduct a field experiment to calibrate the parameters of the model. Building on the gym-attendance study of Charness and Gneezy (2009), we incentivize subjects to attend the gym for a month, observe preand post-treatment attendance relative to a control gro...