Tag: Positional Goods
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Why We Consume More Than We Need: Duesenberry’s Theory of Consumption and Saving
Why do people continue spending even when their income falls? Why do some households feel poor despite earning relatively high salaries? And why does consumption seem to spread through society like a social contagion? These questions were addressed by economist James Duesenberry in his influential 1949 book Income, Saving and the Theory of Consumer Behavior.…