the UK data remarkably well, and possibly in a superior way than US data where, according to our estimates, consumers … habits look more internal in that they appear indexed to past average consumption of only a subset of (peer) consumers in the … economy, rather than total past per capita consumption. We also find that for about one seventh of UK consumers, current …

industries equally rather than based on how relevant they are for consumers. We propose markup measures in which firm-level price …