Reference : Social division in the market: conspicous consumption with nationalist feelings
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Business & economic sciences : Social economics
Migration and Inclusive Societies
Social division in the market: conspicous consumption with nationalist feelings
Zanaj, Skerdilajda mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
[en] relative preferences; vertical differentiation; nationalistic consumption; dynamic duopoly.
[en] In this paper, we explore the effects of conspicuous goods as a means of social division between native citizens and migrants. We push forward the hypothesis that choosing a particular good can confer a sense of place. We introduce this idea in an international vertical differentiation market with two variants and two social groups: migrants and natives. Natives are narrow-minded since they attribute a positive social value to the variant that complies with their own consumption culture. Migrants are open-minded. When consumers belonging to different groups meet, they exchange information about their consumption habits and consumption well-being that reveals their consumption culture: narrow-minded versus open-minded. Consequently, after meeting, some consumers may change beliefs (narrow-minded to open-minded or vice versa) and consumption choices. Using a dynamic model, we fully elucidate the steady-state equilibrium and highlight the impact of nationalism on migrant integration.

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