The Economic Theory of Conspicuous Consumption

General economic theories of consumer demand work well in describing market behaviour with respect to most purchases and the explanation of consumer choice between competing commodities is clearly acceptable for the great majority of scarce goods. However, these theories do not easily accommodate the many non‐economic factors associated with preference formation and with the shaping of consumer attitudes and values. They also pay little or no attention to the dynamic process of choice, purchasing and consumption; in effect, they treat purchasing, consumption and satisfaction as synonyms.