Conspicuous Consumption and Expenditure Visibility: Measurement and Application

old_uid5830
titleConspicuous Consumption and Expenditure Visibility: Measurement and Application
start_date2008/12/12
schedule10h
onlineno
summaryIndividuals live in society, and many of their consumption decisions are observed by others. This may affect consumers’ behavior, as they both observe other consumers and are aware of being observed by them. We detail the theoretical foundation and the construction of a new survey designed to quantify the relative “cultural” visibility of different consumer expenditures. We report and analyze the survey results, placing different consumption categories along a visibility scale. We apply our findings to explore the extent to which a simple ‘signaling by consuming’ model `a la Veblen can explain estimated total expenditure elasticities of demand in a cross-section of U.S. households. We find that our visibility survey could predict up to one third of the observed variation in elasticities across consumption categories.
responsiblesHollard