Theory 51: Rational Addiction Model

Number of Constructs: 21
Number of Triples: 29

Theory triples

• Past consumption influences Marginal utility
• Present-oriented influences Harmful addiction
• Future-oriented influences Beneficial addiction
• Price negatively influences Current consumption
• Stress influences Harmful addiction
• Stress influences Marginal utility
• Marginal utility influences Adjacent complementarity
• Adjacent complementarity positively influences Addiction
• Addiction influences Myopia
• Myopia influences Addiction
• Present-oriented correlates with Myopia
• Unstable steady states influences Multiple steady states
• Multiple steady states influences Addiction
• Multiple steady states influences Current consumption
• Binging influences Marginal utility
• Marginal utility influences Binging
• Quitting influences Marginal utility
• Marginal utility influences Quitting
• Harmful addiction type of Addiction
• Beneficial addiction type of Addiction
• Present-oriented type of Time preference
• Future-oriented type of Time preference
• Marginal utility influences (*) Addiction
• Current consumption influences (*) Addiction
• Myopia part of Rationality
• Time preference part of People
• Bimodal distribution of consumption part of Goods
• People influences (*) Addiction
• Goods influences (*) Addiction

Theory constructs and annotations

• Past consumption
• Marginal utility The gain from an increase, or loss from a decrease, in the consumption of a good or service [ BCIO:050806 (Behavioural consequence) 51 31 41 13 4 43 55 ]
• Present-oriented An attitude characterised by a focus on short-term benefits and outcomes [ BCIO:050231 (Temporal orientation to the present) 51 ]
• Harmful addiction [ ADDICTO:0000241 (harmfulness) 51 ]
• Future-oriented An attitude characterised by a focus on long-term goals and outcomes [ BCIO:050230 (Temporal orientation to the future) 51 ]
• Beneficial addiction [ ADDICTO:0001303 (beneficialness) 51 ]
• Price The amount of money expected, required, or given in payment for something, an increase in which leads to decline in current consumption [ ADDICTO:0000750 (Financial cost) 51 ]
• Current consumption The amount (of an addictive substance) that one currently consumes, and the amount of the same good or substance that one previously consumed [ ADDICTO:0000721 (Substance use) 51 ]
• Stress Negative emotion state caused by events (e.g. divorce, bereavement) [ MFOEM:000212 (negative emotion) 51 3 ]
• Adjacent complementarity The process of becoming addicted to a substance that results from past consumption of the substance raising the marginal utility of current consumption, and the current consumption raising the marginal utility of future consumption (i.e. similar to the idea of classic reinforcement) [ ADDICTO:0001318 (Addiction development) 51 ]
• Addiction The extent to which addiction is harmful or beneficial; depends on whether consumption capital (the value of assets after depreciation) has positive or negative effects on utility and earnings [ ADDICTO:0000349 (Addiction) 51 ]
• Myopia Near-sightedness such that one is more present-focused than future-oriented [ BCIO:050231 (Temporal orientation to the present) 51 ]
• Unstable steady states Situations in which the price and availability of an addictive good explains why one can be heavily addicted, and yet at times abstain completely
• Multiple steady states Situations in which two steady states exist, one stable and one unstable, where the unstable steady state corresponds to a lower addiction level than the stable one
• Binging Consumption of an addictive substance within a single session in an amount that is likely to cause harm or is greater than is usually undertaken [ ADDICTO:0001254 (Binge behaviour) 51 ]
• Quitting Process of stopping a pattern of use of an addictive substance [ BCIO:050207 (Individual human behaviour pattern cessation) 51 ]
• Time preference The extent to which one's attitude is present or future-oriented [ BCIO:050790 (Temporal orientation) 51 19 ]
• Rationality The extent to which one seeks to maximise utility continuously over time [ BCIO:050793 (Utility maximisation disposition) 51 ]
• People
• Bimodal distribution of consumption The proposed distribution of consumption of highly addictive goods such that one mode is located near abstention and the other near a high level of consumption
• Goods

Theory illustration

Theory Reference

• Becker, G.S. & Murphy, K.M. (1988). A theory of rational addiction. Journal of Political Economy, 96(4), 675-700.