Why Chinese elites buy what they buy: The signalling value of conspicuous consumption in China

Xiaotong Jin, Hefeng Wang, Tianxin Wang, Yang Li and Shengliang Deng

In 1899, Thorstein Veblen introduced socially contingent consumption into the economic literature. However, it was not until recent years that empirical studies of his theory begin to appear in mainstream economic literature with diversified conclusions.

Why Chinese elites buy what they buy: The signalling value of conspicuous consumption in China

Xiaotong Jin

Centre for Quantitative Economics, Jilin University Business School

Hefeng Wang

Chinese Academy of Social Sciences

Tianxin Wang

Jilin Academy of Social Sciences

Yang Li

Peking University

Shengliang Deng

Jilin University School of Management/Goodman School of Business, Brock University

The basis on which good repute in any highly organized industrial community ultimately rests is pecuniary strength; and the means of showing pecuniary strength, and so of gaining or retaining a good name, are leisure and a conspicuous consumption of goods.

(Veblen 1899, p. 51)

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