Heterogenous preferences in consumption: aggregate channels, dynamics, and competition concerns

In the past decades most economies have been characterised by three main phenomena: 1) rising concentration, 2) slowing productivity growth, 3) increasing inequality. These three empirical facts are at odds with the neoclassical explanation, and in this project I want to explore whether formulating distributional preferences in consumption as a function of wealth can provide a sensible explanation for the registered increase in concentration despite the productivity slowdown.