By Ulrich Witt (auth.), Prof. Dr. Ulrich Witt (eds.)

The choice of papers provided during this exact factor arose out of 2 occasions. the 1st was once the symposium "Escaping Satiation - expanding Product type, choice swap and the call for part of financial progress" which was once held on the Max Planck Institute in Jena, Germany, in December 1997. The Fritz Thyssen starting place supplied monetary aid for this seminal symposium that's gratefully said. Wilhelm Ruprecht used to be of significant assist in getting ready the symposium and that i wish to exhibit my gratitude to hirn in this celebration. Many stimulating exchanges with hirn over the last few years whereas he was once a learn affiliate on the Institute engaged on long-term adjustments in intake confident me of the relevance and significance of this challenge for figuring out modem financial progress. I additionally owe because of many of us who inspired me to head forward with the symposium, between them Stanley Metcalfe, Carl Christian von Weizsäcker, and likewise Ehud Zuscovitch, who died so without notice final year.

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Wi« 34 feature of modem consumption expenditures. The following hypothesis may be propounded for the cognitive aspects of consumption behavior. e. build up consumption knowledge, by personal experience and inventiveness . Knowledge implicit in socially practiced consumption technologies is also acquired by communicating with, and observing and imitating, other consumers. , through information offered by the producers of consumption items. This causal relationship - the impact of cognitive learning on the evolution of consumption - deserves more discussion.

69). The problems are even more serious when we come to the study of innovation. It is im unfortunate feature of the Schumpeterian legacy that consumers are assigned too passive a role in the innovation process. Neither the debates about demand pull and technology push in the innovation process nor the treatment of demand by Schmookler (1966) developed an account of preference development. Yet every innovation offers consumers the opportunity to change their behaviour and, indeed, some scholars insist that interaction between users and suppliers is a key element in the innovation process (Lundvall, 1988) Some account, therefore, is needed of how consumers respond to new opportunities, of how they acquire and abandon particular tasks and of how these changes are shaped by individual characteristics and social context.

De) Abstract. The theory of economic growth takes little notice of what is happening on the demand side of the markets so that ever more goods and services can be sold. In order to make progres s, this paper revives a classical notion in economics, the concept of wants, and re-casts it in terms of a behavioral theory . Hypotheses are discussed conceming the wants people pursue, the changes in these wants, and the corresponding consumption knowledge. The implications derived focus on why, in spite of the historically unique growth of per capita income in the modem econornies, consumption has not been altogether satiated.

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