Conspicuous consumption

Conspicuous consumption is the public display of spending or possessions to signal wealth and social standing. Its visibility distinguishes it from consumption aimed only at private use.

Veblen good: A good whose demand can rise as its price increases because high cost signals status. High prices can strengthen the status signal that makes conspicuous purchases attractive.
Thorstein Veblen: An American economist and sociologist whose work criticized status competition and the leisure class. He coined the phrase and analyzed the social motives behind display.
Luxury fashion: Clothing and accessories sold as high-status goods through design, branding, craftsmanship, and price. Visible logos and distinctive designs can make fashion purchases public status signals.
Conspicuous leisure: The public display of freedom from productive work through leisure activities or abstention from labor. Veblen contrasted visible leisure with the display of wealth through purchases.
Positional goods: Goods whose value depends substantially on their scarcity or relative standing compared with what others possess. Their appeal comes from ranking above others, not merely from practical usefulness.
The Theory of the Leisure Class: Thorstein Veblen’s 1899 book examining how wealth and social rank shape leisure and consumption. This book introduced conspicuous consumption as a central idea.
Luxury branding: The creation of brand identity around exclusivity, heritage, quality, and premium pricing. Luxury brands cultivate recognition that lets possessions communicate status.
Conspicuous conservation: The public display of environmentally responsible behavior as a signal of status or identity. It signals distinction through restraint and sustainability rather than lavish spending.
Signaling theory: The study of how one party conveys information to another through observable actions or traits. It explains how costly possessions can communicate wealth to observers.
Leisure class: A social group whose wealth frees it from routine productive labor and supports status display. Veblen treated this class as a leading model of conspicuous spending.

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