A. Woolf wrote:
This reminds me of a paper I read as an undergrad in micro theory. I think it was by
Harvey Liebenstein and titled Bandwagon, Snob, and Veblen Effects. I don't remember
the journal, but it was probably from the 1960s
or early 1970s.
_____________________________
In response:
The Chicago/MIT study focuses almost entirely on the marketing cue and informational
content of price endings (in this case, 9). The bandwagon and conspicuous consumption
issues that you find in the consumption of some goods, popularized by the mad
Norwegian (Mr. Veblen), do not have a material effect in the Chicago/MIT catalog field
test. Buying more of a good at $29 than $26 in the study is a very rational act.
Veblen-esque effects simply don't touch the marketbasket makeup and price ranges
featured in the study.
J. Morrison
New York, NY
