| Abstract: |
The objective of this paper is to propose a multidisciplinary approach for the
analysis of demand and innovation. It combines insights from studies on
technology diffusion, evolutionary economics and cognitive psychology to argue
that consumption and demand are learning processes driven by trial-and-error,
rather than by ex-ante maximization. The paper presents a heuristic synthesis
to incorporate learning processes in the determination of consumption
preferences and capabilities. The case of banking service innovation in the UK
is presented as an illustrative example of the outlined dynamics. |