Responsible Consumption Choices and Individual Values

Abstract

The study probes the role of social learning in responsible consumption choices, deploying the DeGroot Social learning process as a theoretical framework. It scrutinizes the mechanisms through which individuals assimilate knowledge about the intrinsic value of nature, using information dissemination and network communication within social constructs, thereby shaping their consumption choices in line with the wisdom of the crowd. Two propositions and deduced assumptions are formulated on the consensus phenomenon, with findings suggesting that rational individuals tend to rely on a combination of personal experience, perception, and intellect, thus steering society towards responsible consumption choices (RC*). However, bounded rationality or irrationality skews this trajectory, resulting in a consumption network devoid of wisdom and diversity. Through using the Friedkin-Johnsen model, we shed light on the complex impact of informational inducements and social synergies on individual consumption behaviours. The incorporation of anticipation utility in our model elucidates the relationship between individuals' beliefs about their future consumption state and their current happiness, while also considering the influence of external factors such as friends, neighbours, and social media. Results indicate that information-loving societies tend to conform quickly to group opinions, potentially leading to inefficient choices. Conversely, information-averse societies may display a lack of consensus due to inconsistent choices. Individuals with high self-confidence and self control are more likely to resist peer pressure, aligning their decisions with their values and goals. Additionally, the study introduces a utility function, drawing on data from the World Values Survey of 460,000 individuals across 90 countries. It underscores the significance of instilling values of thrift and self-control which lead to delayed gratification, particularly among children and youth, as a conduit to responsible choices in future. We delineate an algebraic socio-economic interaction-based policy framework for actualizing responsible consumption and production, categorizing economic agents into State (S), corporations (C), groups (G), and individuals (L). This framework systematically encapsulates the diverse socio-economic interactions within and between these entities. The governmental domain (State) 𝑆 is symbolized by the finite algebra ℤ𝑝, encompassing 𝑝 functional categories (vectors) labelled 0,1, . . . , 𝑝 − 1, each signifying a distinct economic indicator. The proposed conceptual model through employing vector spaces expedites the comprehension that effective resource allocation within society emerges through harmonized xii efforts and mutual trust among economic agents. The application of reflective equilibrium facilitates the bridging of the intention-behaviour gap by fostering mutual coordination among economic agents in the articulation of responsible conduct. In conclusion, this research highlights the essential role of individual values and social interactions in shaping responsible consumption choices. It underscores the importance of targeting values and beliefs for behaviour change. This study provides valuable insights for developing interventions and policies, particularly relevant in Pakistan's socio-economic context for aligning local economic imperatives with global sustainability goals. Keywords: Wisdom of the crowd; DeGroot Social learning; Socio-economic Interaction; Responsible consumption; Anticipation utility; Rationality; Bounded Rationality; Reflective equilibrium; World Values Survey; Trust.