The aim of this paper is to study emergent patterns of demand when there are social interactions between different consumers. Specially, our concern is with the case in which consumers' preferences are influenced by the consumption behaviour of others.

This paper has examined simple versions of life-cycle. Keynesian, and target wealth models of consumption. It has drawn out their implications for the age profile of wealth inequality. The latter is observed to decline over the working lifetime and to uncrease in retirement in a range of...