Abstract:
The goal of this study is to complement Thorstein Veblen's conspicuous consumer approach to economics with Tibor Scitovsky's neuropsychological analysis. This is undertaken by exploring the psychological basis of both theories. Veblen's conspicuous consumer emulates the leisure class, which consumes what can be understood as the best goods of a society. These goods are associated with the concept of social satisfaction rather than physical satisfaction. Veblen's conspicuous consumer decision making is introduced here according to insights from the American pragmatic school of philosophy. On the other hand, Scitovsky introduced elements of neuropsychology to economics using an interdisciplinary approach that was understandable to economists as he sought a better comprehension of consumers' decision making. Scitovsky's psychological-economics approach was inspired by studies from Daniel Berlyne and Donald Hebb. In considering Scitovsky's approach, this study contributes to understanding the decision making of Veblen's conspicuous consumer.
Keywords:
Thorstein Veblen; Tibor Scitovsky; conspicuous consumption; institutional economics