Pricing of Conspicuous Goods: A Competitive Analysis of Social Effects

@article{Amaldoss2005PricingOC,
  title={Pricing of Conspicuous Goods: A Competitive Analysis of Social Effects},
  author={Wilfred Amaldoss and Sanjay Jain},
  journal={Journal of Marketing Research},
  year={2005},
  volume={42},
  pages={30 - 42}
}
Social needs play an important role in the purchase of conspicuous goods. In this article, the authors extend traditional economic models to accommodate social needs, such as desire for uniqueness and conformism, and examine their implications for pricing conspicuous goods. First, in the context of a duopoly, the authors identify the conditions under which the desire for uniqueness can increase demand among some consumers as the price of a product increases. Second, the authors show that though… 

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