ABSTRACT
This chapter argues that the standard microeconomic canon of consumption is not objective. It deals with arbitrary assumptions that contradict experimental evidence and disregard important aspects of the real existing economy such as the distribution of political and economic power. Consumption has a significant social component; in fact, one seldom consumes in isolation. Economics should acknowledge the interrelatedness of consumption: people copy the buying habits of their peers and of opinion leaders and care a lot about what others think of their consumption. Consumption is also efficient: people know what they want and how to get it, and no more satisfaction could possibly be squeezed out of the goods they consume, given their income. Economists emphasize the experiencing of consumption, but anticipation and remembering generate utility as well which they disregard. People usually undervalue unprofitable aspects of consumption in their decisions.
