The concept of conspicuous consumption has been around for many years. People tend to signal their wealth by purchasing expensive and exclusive goods in order to achieve a higher social status. This study analyzes how population density, consumer’s income, and other demographic factors, especially age group, affects the price and consumption of exclusive sneakers. By understanding consumer behavior in the case of sneakers, we can get insights on how consumers behave in general when it comes to consumption of status goods. This study will present a theoretical model based on microeconomic theories of utility maximization, market demand, and price discrimination. Along with that, this study will also present empirical evidence regarding the effects of population density and average income of people from different age groups on the average resale price of the sneakers using multiple linear regression. The findings show that the average resale price of the Yeezy sneaker has a negative relationship with population density of people from the age group 25 to 44. Along with that, the findings show that the average resale price of Yeezy and Off-White sneakers has a positive relationship with average income of people in the age group 15 to 24.
Chavan, Sanket, "“Hey, check out my new kicks!”: An Analysis of Consumption and Market Demand of Exclusive Sneakers" (2021). Senior Independent Study Theses. Paper 9346.
Behavioral Economics | Econometrics | Economic Theory
conspicuous consumption, status goods, population density, sneakers
Bachelor of Arts
Senior Independent Study Thesis
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