Deja Vu Definition 1948

In the field of economics, deja vu is a term that was first introduced in 1948 to describe a phenomenon where consumers experience a sense of familiarity or recognition when making choices involving risk. This concept was explored by economists Milton Friedman and George Stigler in their article 'Rent Control and the Housing Shortage: A Commentary on Roofs or Ceilings?' published in the Journal of Land & Public Utility Economics.

Friedman and Stigler argued that deja vu occurs when consumers are faced with a decision that has been made before, but the context is different. This can lead to a sense of familiarity or recognition, where the consumer feels as though they have already experienced the situation before. The economists believed that this phenomenon was relevant in understanding how consumers make decisions involving risk.

In their article, Friedman and Stigler used the concept of deja vu to challenge the idea of rent control, which was a popular policy at the time. They argued that rent control led to a shortage of housing, as landlords were less likely to invest in new properties due to the uncertainty of future rents. The economists believed that deja vu played a key role in shaping consumer behavior and influencing market outcomes.

The concept of deja vu has since been applied in various fields beyond economics, including psychology and sociology. However, its relevance in understanding consumer behavior remains an important topic of study. In conclusion, the definition of deja vu introduced by Friedman and Stigler in 1948 provides a valuable framework for understanding how consumers make decisions involving risk and how this can impact market outcomes.

Deja vu definition 1948