Conspicuos consumption

4 important questions on Conspicuos consumption

What is the Veblen effect?

Consumers find higher-priced goods more desirable and buy them in order to display superiority

What is costly signaling theory?

Consumption for status will lead to benefits in social interaction

What are the requirements for the signaling theory

1. Observable 2. Hard to fake 3. Associated with unobservable desirable quality (health). 4. Yield a fitness benefit to the signaller
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Why can altruism be a costly signal

Seen as cooperative and helpful, more desirable as friend or romantic partner and status.

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