Nonconvex consumer preferences, compulsive eating, and food addiction

Abstract

PurposeEpisodes of compulsive eating may lead to addiction. Changing relative prices does not always work for many food addicts turned overweight or obese individuals. This paper points to when such situations may arise and how they can be remedied.Design/methodology/approachWe modify the standard neoclassical economics model assumption of indifference curves being convex to the origin. It becomes violated in situations when compulsive eaters become food addicts. As a result of that, the assumption of the concave (quasi-concave) utility function is violated too. We also introduce the possibility that compulsive eaters may have stable but nonconstant preferences.FindingsMost important finding of our model is that a smooth dynamic path to addiction, caused by habit, disappears. Hence, the ability for smooth adjustment to relative price changes due to policies targeting obesity may not be applicable for a compulsive addict. We postulate the existence of thresholds past in which irreversible harm to addicted overeaters may occur. Reaching such states implies that no economic tools at our disposal could reverse the harm, which, in turn, deem that many policies directed at altering relative prices are ineffective in correcting overeating addiction and its consequences.Social implicationsEven if we believe in consumer sovereignty, it is possible to shape consumer behavior via policy actions, including the behavior of extremum seekers turned addicts. The public policy of obesity should consider, in this case, its social cost.Originality/valueNo prior research has considered food addiction in light of compulsive eating caused by extremum-seeking behavior. Addiction correcting food policies always relied on either rational or myopic addiction models.