Abstract
The learning effect of consumption is one of the causes of “cultivation of taste”. In this paper, we analyze this effect theoretically. First, we construct the model of this phenomenon as a Markov chain model. Constructing the model, we assume that our consumers maximize their short-term utility, and that the learning effect is stochastic rather than deterministic. Second, we analyze this model with the simulation method, on the assumption that there are consumers whose preferences differ from each other according to their human capital level. Then, we compare the effectiveness of price controls and educational policy.
