The Behavioral-Structural Theory of Inflation: Consumer Willpower as a Damping Force. A Proposed Theoretical Framework and Mathematical Model

This paper presents a novel theoretical framework for understanding inflation dynamics: the Behavioral-Structural Theory of Inflation. Departing from conventional models that treat inflation as a mechanical outcome of supply-demand imbalances or monetary aggregates, this theory introduces Consumer Willpower (C) as a critical mediating variable that actively dampens price transmission mechanisms. The model integrates structural factors—such as market concentration (N), goods substitutability (θ), and cost pass-through elasticity—with behavioral dimensions rooted in consumer awareness, resistance to unjust pricing, and ethical consumption patterns. It demonstrates that economies with higher collective consumer willpower exhibit lower inflationary elasticity, even under cost-push or demand-pull pressures. Empirical application to contrasting cases—Japan’s deflationary context versus Egypt’s high-inflation environment—validates the framework’s cross-system applicability. The theory opens pathways for non-monetary anti-inflation policies centered on transparency, market ethics, and consumer empowerment, rather than interest-rate hikes or austerity. Originally shared as a working paper on SSRN (ID: 5750025), this version is archived here as an open intellectual contribution.The author dedicates this work to public benefit—free from copyright restrictions, commercialization, or exclusivity—as a form of scholarly endowment (waqf).