SOCI 342 Chapter n/a: Consumption and Inequality
Document Summary
Preferences are determined socially in relation to the positions of individuals in the social hierarchy, in contrast to individual"s static maximization of utility according to exogenous preferences. Veblen"s theory of conspicuous consumption, individuals emulate the consumption patterns of other individuals situated at higher points in the hierarchy. Consumer behaviour is no longer shaped by positions of social class, but by lifestyles across social hierarchy. Based on evolution of a leisure class whose members are not required to work but appropriate a surplus produced by those who do work, working class once surplus, status now more important. To own property is to have status and honour, to have no property is to have no status, although accumulation of property could mean person is efficient and productive. Key to transformation of wealth into status is social performance of members of the leisure class. 2 main ways which individuals can display wealth. Through extensive leisure activities lavish expenditure on consumption and services.
