Rational Actors

Featherstone claims that economics has generally focused on the production rather than the consumption side of things, perhaps because of “the assumption that consumption was unproblematic because it was based upon the concept of rational individuals buying goods to maximize their satisfaction.” Only in the late 19th century was attention given to “conspicuous consumption, the snob effect, and the bandwagon effect.”

Perhaps, but perhaps this is just a different form of rationality. After all, conspicuous consumption has the not unwelcome effect of making the consumer stand out from the competition, which, however disadvantageous economically, has social and perhaps political advantages.

However this is resolved, the challenges of consumption are greatly increased in a world of constant innovation, and where “new” is invariably code for “improved,” and where “new” is an inevitably marker of status.

Featherstone says that “The constant supply of new, fashionably desirable goods, or the usurpation of existing marker goods by lower groups, produces a paperchase effect in which those above have to invest in new (informational) goods to re-establish the original social distance.”

Like, say you want to be the cool guy in the class. You get an iPod as a badge of cool. Before you know it, the prices are tumbling, and then everybody’s got an iPod, even the poor geek with acne and oversized eyeglasses. Fortunately, soon Apple rescues you with iPod, Version 2, and if you want to stay in the “cool” category, and not slide dangerously close to geekiness, you had better get yourself Version 2. Prices tumble again, and what are you going to do?

Perfectly rational, that.