Social interactions in demand

Arbeitspapier

We examine theoretically demand in a two-good economy where the demand of one good is influenced by either a spillover effect in the form of an externality from other consumers' choices and or a conformity effect representing a need for making similar choices as others. A positive spillover effect increases the demand for the good with interactions, and a conformity effect makes the demand curve pivot around the average market demand to make demand less price sensitive. The collateral implication is that spillover in consumption increases the associated derived demand for labor and conformity in consumption makes the associated derived demand for labor less elastic. Finally, we also demonstrate how the presence of a good with social interactions affects the demand for the good without social interactions and the associated demand for the labor producing the non-interactions good.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: IZA Discussion Papers ; No. 3656

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Consumer Economics: Theory
• Thema: Consumer demand ; social interactions ; spillover ; conformity ; labor demand ; Konsumtheorie ; Soziale Beziehungen ; Konsuminterdependenz ; Spillover-Effekt ; Arbeitsnachfrage ; Elastizität ; Theorie

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Grodner, Andrew ; Kniesner, Thomas J.
• Ereignis: Veröffentlichung
• (wer): Institute for the Study of Labor (IZA)
• (wo): Bonn
• (wann): 2008

Weitere Informationen

• Handle: http://hdl.handle.net/10419/34779
• URN: urn:nbn:de:101:1-20080828248
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ