Collective consumption: an application to the passive drinking effect
This study introduces a new collective complete demand system with individual Engel effects that is easy to estimate and permits undertaking policy analysis at the individual rather than household level. Previous estimations of collective demand were limited to single equations. The empirical application investigates the passive drinking effect, that is, whether consumption of alcohol affects the distribution of resources among household members and their level of wellbeing. The results show that a high level of alcohol consumption of one household member significantly affects the allocation of household resources and suggest thought-provoking policy implications.
Recently, the competition in Chinese enterprises becomes more and more acute, in order to set up a good enterprise image, an enterprise should communicate its operation mind through the amount and effectiveness of its advertising investment. This paper provides an overview of the recent theoretical and empirical research on herd behavior. It looks at the basic model of herding, the causes of herd behavior, and the effect that herding has on advertising markets. We get the results that herding exists in advertising market.