Basu and Van (1998) present a fundamental framework of child labor with two important axioms: the luxury axiom and the substitution axiom. A number of empirical studies, however, reveal a “wealth paradox”. The current paper has two aims. First, it develops a model that provides an explanation for “the wealth paradox” in light of the luxury axiom and the substitution axiom. Second, it helps unde...

Luxury would appear to be both difficult to define and difficult to identify archaeologically. Evidence from two different Islamic communities in Gao (Mali) and Bilad al-Qadim (Bahrain) indicates that the recognition of the exotic rather than the luxurious is easier to achieve. The notion of luxury within these communities is reflected in culinary skill and preparation, and in communal dining, ...

Costly signaling theory provides an explanation for why humans are willing to a pay a premium for conspicuous products such as luxury brand-labeled clothing or conspicuous environmentally friendly cars. According to the theory, the extra cost of such products is a signal of social status and wealth and leads to advantages in social interactions for the signaler. A previous study found positive ...

This research is designed to study consumers’ purchasing attitudes to counterfeit luxury goods on electronic marketplaces (e-marketplaces). And two research hypotheses are proposed in this research. Based on data analysis of 243 samples, this study explores the dimensions of consumer attitudes (morality and law, accessibility, burden-bearing, function effectiveness, economical efficiency) and m...

This research examines the impact of media depictions of success (or failure) on consumers’ desire for luxury brands. In a pilot study and three additional studies, we demonstrate that reading a story about a similar/successful other, such as a business major from the same university, increases consumers’ expectations about their own future wealth, which in turn increases their desire for luxur...

This research examines the impact of media depictions of success (or failure) on consumers’ desire for luxury brands. In a pilot study and three additional studies, we demonstrate that reading a story about a similar/successful other, such as a business major from the same university, increases consumers’ expectations about their own future wealth, which in turn increases their desire for luxur...

This study examines the potentials of social media marketing for luxury retailers. Social media marketing tactics of three luxury retail brands (Barneys New York, Net-a-Porter.com, and Saks Fifth Avenue) were examined across three major social media networks (Facebook, Twitter and Instagram). All posts by the three retailers on Facebook, Twitter and Instagram were recorded over the course of a ...