The behavior of street vendors in the informal sector in relation to decision making as rational agents
DOI:
https://doi.org/10.62486/agma202433Keywords:
behavior, street vendor, informal sector decision making, rational agentsAbstract
The behavior of a street vendor in the informal sector regarding decision making as rational agents can be understood through a stochastic model that explains their behavior. In this model, the street vendor has subsistence consumption subject to two constraints: the first considers an uncertain income and the second consists of his consumption routine. Past consumption influences future consumption, which is an important part of this seller's decision making as a rational agent. In addition, the optimal proportion of income for savings is determined when the individual has a surplus, the hours dedicated to his activity and the optimal future consumption strategy. This approach shows how street vendors in the informal sector make rational decisions in an environment of uncertain income and consumption routines.
References
Chen, M. (2018). "Informal Economy: Definitions, Theories and Policies". WIEGO Working Paper (Urban Policies) No. 32.
Chen, M y Vanek J (2002). "Informe sobre la economía informal global 2002: un desafío del siglo XXI." Instituto Internacional de Desarrollo del Trabajo.
De Soto, H (1989). "El otro sendero: la revolución informal." Harper & Row
De Soto, H. (2019). "The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else". Basic Books.
Glaeser, E., et al (2014). "El surgimiento de la economía informal." Journal of Economic Perspectives 28.3.
Heath, C y Heath, D. (2013). Decisive: How to Make Better Choices in Life and Work. Crown Business.
Kahneman, D. (2011). Thinking, Fast and Slow. Farrar, Straus and Giroux.
Portes, A. (2010). "Economic Sociology: A Systematic Inquiry". Princeton University Press. DOI: https://doi.org/10.1515/9781400835171
Portes, A y Wilson W. (1989). "La informalidad económica: desmitificación y conceptos de desarrollo." La sociología del desarrollo: una revisión crítica 65-97.
Sunstein, C y Thaler, R (2008). Nudge: Improving Decisions About Health, Wealth, and Happiness. Yale University Press.
Sassen S, Peet R y Kundu R. (2020). Street Vendors in Global Urban Economy
Published
Issue
Section
License
Copyright (c) 2024 Nolenis Mendoza Bolivar, Yuli Toro Cardenas, Alexandra Mosquera Trujillo (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
The article is distributed under the Creative Commons Attribution 4.0 License. Unless otherwise stated, associated published material is distributed under the same licence.
