IDEAS home Printed from https://ideas.repec.org/a/ucp/jpolec/v102y1994i5p841-77.html
   My bibliography  Save this article

A Theory of Conformity

Author

Listed:
  • Bernheim, B Douglas

Abstract

This paper analyzes a model in which individuals care about both consumption (intrinsic utility) and social status. Status depends on public perceptions about an individual's predispositions rather than on the individual's actions. However, since predispositions are unobservable, actions signal predispositions and therefore affect status. When status is sufficiently important relative to intrinsic utility, many individuals conform to a rigid standard of behavior, despite heterogeneous intrinsic preferences. When status is relatively unimportant, no conformity emerges. The model produces both customs and fads, and it suggests an explanation for the development of multiple subcultures with distinct norms. Copyright 1994 by University of Chicago Press.

Suggested Citation

  • Bernheim, B Douglas, 1994. "A Theory of Conformity," Journal of Political Economy, University of Chicago Press, vol. 102(5), pages 841-877, October.
    • Handle: RePEc:ucp:jpolec:v:102:y:1994:i:5:p:841-77
    DOI: 10.1086/261957
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/261957
    File Function: full text
    Download Restriction: Access to full text is restricted to subscribers. See http://www.journals.uchicago.edu/JPE for details.
    File URL: https://libkey.io/10.1086/261957?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. N/A, 1979. "Calendar of Economic Events April June 1979," National Institute Economic Review, National Institute of Economic and Social Research, vol. 89(1), pages 56-58, August.
    2. Green, Jerry & Laffont, Jean-Jacques, 1990. "Competition on many fronts: A stackelberg signaling equilibrium," Games and Economic Behavior, Elsevier, vol. 2(3), pages 247-272, September.
    3. Banerjee, A.V. & Besley, T., 1990. "Peer Group Externalities And The Learning Incentives: A Theory Of Nerd Behavior," Papers 68, Princeton, Woodrow Wilson School - Discussion Paper.
    4. In-Koo Cho & David M. Kreps, 1987. "Signaling Games and Stable Equilibria," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(2), pages 179-221.
    5. Bikhchandani, Sushil & Hirshleifer, David & Welch, Ivo, 1992. "A Theory of Fads, Fashion, Custom, and Cultural Change in Informational Cascades," Journal of Political Economy, University of Chicago Press, vol. 100(5), pages 992-1026, October.
    6. -, 1976. "Reactivación del Mercado Común Centroamericano," Cuadernos de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 27774 edited by Cepal, September.
    7. Kohlberg, Elon & Mertens, Jean-Francois, 1986. "On the Strategic Stability of Equilibria," Econometrica, Econometric Society, vol. 54(5), pages 1003-1037, September.
    8. Jack Hirschleifer & John G. Riley, 1979. "Uncertainty and Information in Economics," UCLA Economics Working Papers 140, UCLA Department of Economics.
    9. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, December.
    10. Besley, Timothy & Coate, Stephen, 1992. "Understanding welfare stigma: Taxpayer resentment and statistical discrimination," Journal of Public Economics, Elsevier, vol. 48(2), pages 165-183, July.
    11. George A. Akerlof, 1980. "A Theory of Social Custom, of which Unemployment may be One Consequence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(4), pages 749-775.
    12. Kiminori Matsuyama, 1991. "Custom Versus Fashion: Path-Dependence and Limit Cycles in a Random Matching Game," Discussion Papers 1030, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    13. H. Leibenstein, 1950. "Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 64(2), pages 183-207.
    14. 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 349-373, June.
    15. N/A, 1979. "Chapter III. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 87(1), pages 36-56, February.
    16. Frank, Robert H, 1985. "The Demand for Unobservable and Other Nonpositional Goods," American Economic Review, American Economic Association, vol. 75(1), pages 101-116, March.
    17. N/A, 1979. "Chapter II. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 90(1), pages 21-34, November.
    18. Robert E. Lucas & Thomas J. Sargent, 1979. "After Keynesian macroeconomics," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 3(Spr).
    19. Lewis, Tracy R & Sappington, David E M, 1989. "Inflexible Rules in Incentive Problems," American Economic Review, American Economic Association, vol. 79(1), pages 69-84, March.
    20. N/A, 1979. "Chapter I. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 90(1), pages 7-20, November.
    21. Kiminori Matsuyama, 1991. "Custom Versus Fashion: Hysteresis and Limit Cycles in a Random Matching Game," Discussion Papers 940, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    22. N/A, 1979. "Chapter III. The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 88(1), pages 26-39, May.
    23. N/A, 1979. "Chapter I. The Economy in 1978," National Institute Economic Review, National Institute of Economic and Social Research, vol. 87(1), pages 13-24, February.
    24. N/A, 1979. "Chapter I. The Home Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 88(1), pages 5-15, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Henderson, Dennis R. & McCorriston, Steve & Sheldon, Ian M., 1993. "Vertical Coordination: Concept, Practice, Theory and Policy Implications for the Agro-Food Sector," Occasional Papers 233157, Regional Research Project NC-194: Organization and Performance of World Food Systems.
    2. Laurie Simon Bagwell & B. Douglas Bernheim, 1992. "Conspicuous Consumption, Pure Profits, and the Luxury Tax," NBER Working Papers 4163, National Bureau of Economic Research, Inc.
    3. Tobias Thomas, 2013. "What price makes a good a status good? Results from a mating game," European Journal of Law and Economics, Springer, vol. 36(1), pages 35-55, August.
    4. Panos, Georgios A. & Theodossiou, Ioannis, 2010. "Unionism and Peer-Referencing," SIRE Discussion Papers 2010-122, Scottish Institute for Research in Economics (SIRE).
    5. Agnès Festré, 2010. "Incentives And Social Norms: A Motivation‐Based Economic Analysis Of Social Norms," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 511-538, July.
    6. Friedrichsen, Jana, 2016. "Signals sell: Designing a product line when consumers have social image concerns," Discussion Papers, Research Unit: Market Behavior SP II 2016-202, WZB Berlin Social Science Center.
    7. Corneo, Giacomo & Jeanne, Olivier, 1999. "Segmented communication and fashionable behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 39(4), pages 371-385, July.
    8. Dobrin R. Kolev & Thomas J. Prusa, 2021. "Dumping and double crossing: The (in)effectiveness of cost-based trade policy under incomplete information," World Scientific Book Chapters, in: Thomas J Prusa (ed.), Economic Effects of Antidumping, chapter 7, pages 129-152, World Scientific Publishing Co. Pte. Ltd..
    9. Frijters, Paul, 1998. "A model of fashions and status," Economic Modelling, Elsevier, vol. 15(4), pages 501-517, October.
    10. Dmitri Kuksov & Kangkang Wang, 2013. "A Model of the "It" Products in Fashion," Marketing Science, INFORMS, vol. 32(1), pages 51-69, July.
    11. Corneo, Giacomo & Jeanne, Olivier, 1994. "Investing in social norms," CEPREMAP Working Papers (Couverture Orange) 9404, CEPREMAP.
    12. Richard Chisik, 2015. "Job market signalling, stereotype threat and counter‐stereotypical behaviour," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 155-188, February.
    13. Gierl, Heribert & Huettl, Verena, 2010. "Are scarce products always more attractive? The interaction of different types of scarcity signals with products' suitability for conspicuous consumption," International Journal of Research in Marketing, Elsevier, vol. 27(3), pages 225-235.
    14. Kaushik Basu, 2016. "Beyond the Invisible Hand: Groundwork for a New Economics," Economics Books, Princeton University Press, edition 1, number 9299.
    15. Moav, Omer & Neeman, Zvika, 2008. "Conspicuous Consumption, Human Capital and Poverty," CEPR Discussion Papers 6864, C.E.P.R. Discussion Papers.
    16. Amegashie, J.A., 2002. "Misery Loves Company: Social Influence and the Supply/Pricing Decision of Popular Night Clubs," Working Papers 2002-10, University of Guelph, Department of Economics and Finance.
    17. Grinblatt, Mark & Keloharju, Matti & Ikäheimo, Seppo, 2003. "Interpersonal Effects in Consumption: Evidence from the Automobile Purchases of Neighbors," University of California at Los Angeles, Anderson Graduate School of Management qt69h2f7cv, Anderson Graduate School of Management, UCLA.
    18. Nick Vikander, 2011. "Targeted Advertising and Social Status," Tinbergen Institute Discussion Papers 11-016/1, Tinbergen Institute.
    19. Bilancini, Ennio & Boncinelli, Leonardo, 2008. "Ordinal vs cardinal status: Two examples," Economics Letters, Elsevier, vol. 101(1), pages 17-19, October.
    20. Adriaan R. Soetevent, 2006. "Empirics of the Identification of Social Interactions; An Evaluation of the Approaches and Their Results," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 193-228, April.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jpolec:v:102:y:1994:i:5:p:841-77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JPE .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.