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Interdependent Consumer Choice and the Oval of Cassini

Abstract

This paper follows a theory of Nicosia and Hibshoosh regarding the choice by social consumer unit who is facing conflicting institutional norms. The paper presents a duo-centric consumer residential choice model with special disutility function. The properties of the Oval of Cassini play a key role in the parstmonious modeling of this phenomenon and in the analysis. Specifically, we develop a residential consumer choice model where the consumer utility is affected by conflicted demands for activities of work and non-work institutions. The consumer unit is simultaneously attracted to two predetermined centers of work and non-work, while making its residence choice. We trace the consequences of these assumptions for optimal consumer choice of residential location, and for the size and price of property, level of a composite good, the level of identifies a preference for setting at the edges of a region along its main corridor in a two dimensional region. It also indicates a pattern of specifically directed curved regional growth in the periphery, with lesser development in the region\u27s center

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