Conspicuous Consumption and Sophisticated Thinking

@article{Amaldoss2005ConspicuousCA,
  title={Conspicuous Consumption and Sophisticated Thinking},
  author={Wilfred Amaldoss and Sanjay Jain},
  journal={Manag. Sci.},
  year={2005},
  volume={51},
  pages={1449-1466}
}
Consumers purchase conspicuous goods to satisfy not only material needs but also social needs such as prestige. In an attempt to meet these social needs, producers of conspicuous goods like cars, perfumes, and watches, highlight the exclusivity of their products. In this paper, we propose a monopoly model of conspicuous consumption using the rational expectations framework, and then examine how purchase decisions are affected by the desire for exclusivity and conformity. We show that snobs can… 

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