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Honestly, why are you driving a BMW?

Author

Listed:
  • Johansson-Stenman, Olof

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

  • Martinsson, Peter

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

Abstract

This paper proposes that people derive utility not only from goods or their attributes as in standard models, but also from their self-image as influenced by their own perception of their preferences. In a representative survey, most respondents considered their own concern for status when purchasing a car to be minor in comparison with the status concerns of others. Similarly, most individuals considered themselves to be more environmentally concerned than other people. These results are consistent with an extension of the conventional theory where an individual’s selfimage is added as an argument in the utility function.

Suggested Citation

  • Johansson-Stenman, Olof & Martinsson, Peter, 2004. "Honestly, why are you driving a BMW?," Working Papers in Economics 141, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0141
    Note: Published in Economic Behavior and Organization, 2006, Vol. 60, pp. 129-146.
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    References listed on IDEAS

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    More about this item

    Keywords

    Status; environmental concern; self-deception; self-image; preference falsification;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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