Template-Type: ReDIF-Paper 1.0
Title: Conspicuous Consumption and the Existence of Upward Sloping Demand
  	Curves
Author-Name: Giacomo Corneo
Author-WorkPlace-Name: University of Bonn
Author-Name: Olivier Jeanne
Author-WorkPlace-Name: ENPC-CERAS
Abstract: The paper develops a theoretical framework for studying
  	conspicuous consumption. This is modeled as a device that signals
  	the consumer's social status. Status is some function of the
  	individual's rank in the wealth hierarchy. This approach makes it
  	possible to distinguish between snob and conformist consumer
  	behavior. It is shown that when behavior is conformist, the market
  	demand curve for the good can exhibit a positive slope. A number of
  	unconventional implications for public policy are then derived
  	concerning taxation, monopoly power, and the voluntary provision of
  	public goods.
Keywords: consumption externalities, status-seeking behavior, law of demand
Classification-JEL: D11; D82; H23
Creation-Date: 1994-12
File-URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonsfa/bonsfa461.ps
File-Format: Application/PostScript
File-Size: 24
Handle: RePEc:bon:bonsfa:461