170 notes to pages 16–23
- In Canada, a potlatch ban was in effect between 1884 and 1951.
- See also Fussell 1983 , 28. The terms primary and secondary do not signify
the relative importance of these utilities in actors’ calculations. Veblen uses pri-
mary and secondary to differentiate between the more direct functional benefits
and the less tangible social ones. - In this Veblen echoes classic economists such as Adam Smith and David
Hume. Both see a direct link between property rights and the introduction of lux-
uries. Interestingly, Smith saw a positive economic role for secondary- utility con-
siderations: “It is well that nature imposes upon us in this manner. It is this decep-
tion which rouses and keeps in continual motion the industry of mankind” (Smith
[ 1759 ] 1976 , 183 , as quoted in Xenos 1987 , 203 ). For Smith, emulative prestige-
seeking behavior is a necessary condition for sustainable economic growth. - While Veblen discusses societal characteristics that enable the growth of
conspicuous consumption, he does not set the concept in a particular historical
context, nor does he qualify the applicability of his theory. C. Wright Mills’s in-
sightful critique of Veblen’s work focuses on this point. Mills argues that Veblen’s
Theory of the Leisure Class is not a general universal description of upper classes
across time and space but rather a rich contextual account of some of the upper
classes in the United States at the end of the nineteenth century: “The Theory of
the Leisure Class is not the theory of the leisure class. It is a theory of a particular
element of the upper classes in one period of the history of one nation” (Mills
1959 , 58 ). Mills claims that Veblen fails to describe the behavior of upper classes
in societies with institutionalized nobility. Conspicuous consumption, according to
Mills, is prevalent especially among the nouveaux riches as new upper classes try
to ensure their position by translating money into status symbols. - For more on consumption externalities, see Tian and Yang 2009 ; Valente
2009 ; Eaton and Eswaran 2005 ; Dupor and Liu 2003 ; Meade 1952 ; Duesenberry
1949 ; Pigou 1920. - Logically, we should also expect a counter- Veblen effect, that of the incon-
spicuous consumer. Under such a scenario, consumers buy cheaper items to avoid
ostentation. The inconspicuous consumer seeks not to embarrass others by seem-
ing wealthier or more powerful. However, empirically, it is not easy to differentiate
between the counter- Veblen effect and the expectations of demand theory. See
Lea 1980. - The exclusive aircraft carrier club currently includes ten members: the
United States, the United Kingdom, India, Brazil, Russia, Spain, Italy, France,
Thailand, and China. - For classic works on club goods, see Buchanan 1965 ; Olson and Zeckhauser
1966 ; Sandler and Tschirhart 1980. For a discussion of club membership as a status
mechanism, see Hansmann 1986. - Frank 1985 a, 4.