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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
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.:
- Mark Aguiar & Erik Hurst, 2006.
"Measuring Trends in Leisure: The Allocation of Time Over Five Decades,"
NBER Working Papers
12082, National Bureau of Economic Research, Inc.
- Mark Aguiar & Erik Hurst, 2007. "Measuring Trends in Leisure: The Allocation of Time over Five Decades," The Quarterly Journal of Economics, MIT Press, vol. 122(3), pages 969-1006, 08.
- Mark Aguiar & Erik Hurst, 2006. "Measuring trends in leisure: the allocation of time over five decades," Working Papers 06-2, Federal Reserve Bank of Boston.
- Bagwell, Laurie Simon & Bernheim, B Douglas, 1996. "Veblen Effects in a Theory of Conspicuous Consumption," American Economic Review, American Economic Association, vol. 86(3), pages 349-73, June.
- S. Malakhov., 2003. "Transaction Costs, Economic Growth and Labor Supply," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 9.
- Malakhov, Sergey, 2012. "Satisficing decision procedure and optimal consumption-leisure choice," MPRA Paper 38964, University Library of Munich, Germany.
- Mark Aguiar & Erik Hurst & Loukas Karabarbounis, 2012. "Recent Developments in the Economics of Time Use," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 373-397, 07.
- Malakhov, Sergey, 2013.
"Money flexibility and optimal consumption-leisure choice under price dispersion,"
45197, University Library of Munich, Germany.
- Sergey MALAKHOV, 2013. "Money Flexibility And Optimal Consumption-Leisure Choice Under Price Dispersion," Theoretical and Practical Research in Economic Fields, ASERS Publishing, vol. 0(1), pages 77-88, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.