5 research outputs found
Conspicuous Consumption and Inequality
We analyze the change in consumer demand following a mean preserving change in consumption inequality when there is conspicuous consumption. We model interdependent preferences including âkeeping up with the Jonesesâ (imitating others) and ârunning away from the Jonesesâ (distinguishing oneself from others) with multiple peer groups and peer group effects (envy and snob effects). An individual not directly involved in the redistribution increases consumption of the more conspicuous good when she demonstrates i) âkeeping upâ and a relatively stronger envy effect, or ii) ârunning awayâ and a relatively stronger snob effect. Behaviors generated by existing models emerge as special cases.Conspicuousness; peer group effects; keeping up with the Joneses; status signaling; envy; snob
Conspicuous Consumption and Inequality
We analyze the change in consumer demand following a mean preserving change in consumption inequality when there is conspicuous consumption. We model interdependent preferences including âkeeping up with the Jonesesâ (imitating others) and ârunning away from the Jonesesâ (distinguishing oneself from others) with multiple peer groups and peer group effects (envy and snob effects). An individual not directly involved in the redistribution increases consumption of the more conspicuous good when she demonstrates i) âkeeping upâ and a relatively stronger envy effect, or ii) ârunning awayâ and a relatively stronger snob effect. Behaviors generated by existing models emerge as special cases