An analytical comparison of single -stage and two-stage models of consumer behavior

Abstract

This paper addresses an interdisciplinary issue : the use of economic models of consumer behavior in the field of marketing . The main purpose of this research is to examine the implication of modelling consumer behavior utilizing two-stage untility models as against conventional single- stage utility models . The condition under which both types of models yield the same observable behavioral pattern is studied. Based on this condition, it is then argued that two-stage models provide a better framework for explaning empirical findings in marketing .