Veblen effect, search for status goods, and negative utility of conspicuous leisure
AbstractWhen expected savings on purchases are greater than the wage rate, the optimal search results in the negative marginal utility of leisure. The search transforms the classical backward bending effect and the leisure becomes complementary to the search. Consumers compensate “bad” leisure by status goods of exceptional quality on markets with high price dispersion. Status consumption complements “bad” conspicuous leisure and produces the Veblen effect as well as the “gardening aboard the boat” effect.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 40809.
Date of creation: 20 Aug 2012
Date of revision:
Veblen effect; search; status goods; negative utility; conspicuous leisure;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-09-03 (All new papers)
- NEP-MIC-2012-09-03 (Microeconomics)
- NEP-PKE-2012-09-03 (Post Keynesian Economics)
- NEP-UPT-2012-09-03 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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