JUDGING QUALITY BY PRICE, SNOB APPEAL, AND THE NEW CONSUMER THEORY.
Abstract
The paper provides an analytical treatment of judgment of quality by price and snob appeal. It summarizes the relevant aspects of Lancaster's approach and shows how snob appeal and judgment of quality by price can be incorporated into the 'new consumer theory'. Making use of this integration, the authors derive analytically the conditions under which positively sloping demand curves will result. In the course of this demonstration, the new consumer theory provides a vehicle for including prices in the utility functions of traditional theory.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1966
- Accession Number
- AD0650139
Entities
People
- Alvin K. Klevorick
- Roger E. Alcaly
Organizations
- Princeton University