Perspectives on Status Consumption

Date of Award

2009

Document Type

Thesis

Degree Name

Bachelors

Department

Social Sciences

First Advisor

Coe, Richard

Keywords

Conspicuous Consumption, Status, Luxury Goods

Area of Concentration

Economics

Abstract

This thesis aims to identify some of the methods by which consumption of luxury goods and therefore status can be analyzed. Lancaster's Attribute Analysis is employed to posit status as a characteristic of luxury goods and one that is desirable to consumers. Then, status can be thought of as a "good" and one that may be subject to a well-behaved preference structure, such as a Cobb-Douglas. Those who have a Cobb-Douglas utility function may consider status a critical good in everyday consumption, and for which there is no substitute for status. In addition, taste for and perception of status may be a function of several complex variables. Leibenstein's Veblen Effect is also investigated in order to show that real price and conspicuous price may differ and thus consumers may seek status through deals or discounts. Despite the fact that consumption of status is widespread across demographics, in an economic recession, the status market (overlapping with the luxury-goods market) may be uniquely affected and/or particularly hard-hit.

Rights

This bibliographic record is available under the Creative Commons CC0 public domain dedication. The New College of Florida, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.

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