Getting Ahead of the Joneses: When Equality Increases Conspicuous Consumption among Bottom-Tier Consumers
نویسندگان
چکیده
منابع مشابه
Getting Ahead of the Joneses: When Equality Increases Conspicuous Consumption among Bottom-Tier Consumers
It is widely believed that increasing the equality of material possessions or income in a social group should lead people at the bottom of the distribution to consume less and save more. However, this prediction and its causal mechanism have never been studied experimentally. Five studies show that greater equality increases the satisfaction of those in the lowest tier of the distribution becau...
متن کامل1 Top - tier Versus Bottom - tier Outsourcing
We develop a three-tier model of international outsourcing in which intermediate firms in a middle-tier country choose between outsourcing their production activities to a bottom-tier country and contracting out their R & D activities to a top-tier country. Managerial ability augments innovation activities, and there exists a threshold level of managerial ability beyond which intermediate firms...
متن کاملAdvertising and Conspicuous Consumption
The paper formalizes the intuition that brands are consumed for image reasons and that advertising creates a brand’s image. The key idea is that advertising informs the public of brand names and creates the possibility of conspicuous consumption by rendering brands a signalling device. In a price competition framework, we show that advertising increases consumers’ willingness to pay and thus pr...
متن کاملConspicuous consumption dynamics
We formalize Veblen’s idea of conspicuous consumption as two alternative forms of interdependent preferences, dubbed envy and pride. Agents adjust consumption patterns gradually, in the direction of increasing utility. From an arbitrary initial state, the distribution of consumption among agents with identical preferences converges to a unique equilibrium distribution. When pride is stronger, t...
متن کاملConspicuous consumption and satisfaction
Traditional tools of welfare economics identify the envy-related welfare loss from conspicuous consumption only under very strong assumptions. Measured income and life satisfaction offers an alternative for estimating such consumption externalities. The approach is developed in the context of luxury car consumption (Ferraris and Porsches) in Switzerland. Results from household panel data and fi...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Consumer Research
سال: 2011
ISSN: 0093-5301,1537-5277
DOI: 10.1086/658165