The Price of Prestige

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those are really needed. Hence, we should expect models that emphasize

material functionalism to work best when explaining consumption pat-

terns of expensive goods. The theory of conspicuous consumption, on the

other hand, predicts the opposite. Because the consumption of inexpen-

sive items cannot generate an effective test of status, those goods would be

consumed only when needed. Expensive items, on the other hand, could

serve as attractive venues for conspicuous consumption, and therefore their

acquisition patterns should be more loosely correlated with functional

reasoning. Thus, for example, according to this argument, the procure-

ment of fast attack crafts, small and relatively cheap vessels, should be

more significantly affected by strategic variables than the procurement of

cruisers.

Finally, a rational actor is likely to be deterred only by capabilities that

may inflict costs on her in case of conflict. Capabilities that would play

no role in an expected confrontation should have little effect on the cost-

benefit calculations of the actors. For example, a land power, planning a

land offensive against its neighbors, may not be easily deterred by a mari-

time power, even if the latter has superior maritime capabilities. In this

example maritime capabilities are not directly relevant to the protection of

the disputed asset. Mearsheimer ( 1986 ) claims that this is one of the rea-

sons behind the failure of British deterrence in both world wars. Germany

did not view the British navy as a deterrent because naval power had a

marginal functional role in any expected land campaign in Western Eu-

rope. Deterrence thus assumes a relatively narrow functional relationship

between the capabilities developed by the actors and their potential use in

a future conflict.

The concept of conspicuous consumption, on the other hand, chal-

lenges this tight functional relationship between the acquisition of new

capabilities and strategic need. Actors may continue to develop capabili-

ties that have very little to do with the requirements of deterrence. In fact,

paradoxically, these are the types of capabilities that would attract the

greatest amount of attention and prestige. A weak functional justification

combined with a high price tag transforms the development of such capa-

bilities into a form of luxury that can effectively signal actors’ status. The

more tenuous the functional dimension of consumption and the more

expensive it is, the more it can be viewed as a luxury good. Indeed, when an

object becomes a status symbol, we often observe a persistent mismatch

between its design and the strategic needs it is supposed to fulfill. Such

mismatches have been an almost consistent facet of naval procurement.
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