Social norms and equality of opportunity in conspicuous consumption: on the diffusion of consumer good innovation
AbstractThis paper presents a simple evolutionary model to study the diffusion patterns of product innovations for consumer goods. Following a Veblenian theme, we interpret consumption as a social activity constrained by social norms and equality of opportunity. Societies that allow for more behavioral variety will experience faster adoption of new consumer goods. We also find that the speed of diffusion as well as the saturation levels reached highly depend on the equality of opportunity. Combining these two effects, we conclude that a social structure displaying behavioral variety and equal opportunities dominates any other social set-up in terms of the speed of adoption of product innovations.
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Bibliographic InfoPaper provided by Vienna University of Economics Research Group: Growth and Employment in Europe: Sustainability and Competitiveness in its series Working Papers with number geewp29.
Date of creation: Jul 2003
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Conspicuous consumption; consumption dynamics; diffusion of consumer goods; social norms; equality of opportunity;
Find related papers by JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
This paper has been announced in the following NEP Reports:
- NEP-CBE-2003-09-14 (Cognitive & Behavioural Economics)
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