Products as Affective Modifiers of Identities

© The Author(s) 2015. Are salesclerks seen as better, more powerful, or more active when they drive Mustangs? What about entrepreneurs? What about driving a mid-sized car? Intuitively, we have ideas about these, but much of the research on the affective nature of products is on purchasing, desires, and self-fulfillment. Drawing on symbolic interactionism, we argue that people's association with products has some basis in the impression management of their identity. For this to occur, there must be some cultural consensus about the way that products modify identities. Drawing on affect control theory's (ACT) methodology and equations, we measure the goodness, powerfulness, and activeness of several products, identities, and the associated product-modified identities to explore how products function as affective modifiers of identities. We find consistent effects across several types of technology products, whereby products pull the modified identity in the direction of the products' affective qualities. Support is established for the ACT equations that predict how traits modify identities as also having utility for predicting how products modify identities. This suggests that the opening questions can be answered empirically by measuring cultural-specific sentiments of the identity and the product and by developing equations to predict the identity modification process

Lafite in China

Increased economic power has positioned China within the global elite, yet China’s legitimacy remains low with regard to hierarchies of taste. Drawing from Bourdieu and Elias, this article offers an account of the global dynamics of status contests, and the role played by cultural capital and notions of civility and vulgarity. Specifically, we examine how U.S., UK, and Chinese media represent Chinese consumption of fine wine, and particularly that of Château Lafite, in the 2000 to 2013 period. Our analysis reveals four major ways in which Chinese fine wine consumption is framed—as vulgar, popular, functional, and discerning—and highlights tensions between Western and Chinese terms of cultural legitimacy. The research uncovers nuanced dimensions to the “East/West” divide in terms of the grades of cultural capital, competing logics of valuation, and modes of civility at play. Macromarketing implications of fine wine consumption in a fragmented and complex market are discussed

Conspicuous consumption of the elite: Social and self-congruity in tourism choices

This paper relies on social and economic psychology to explore how the travel choices of Portuguese citizens, with different status levels in their daily lives, perceive and adopt different conspicuous travel patterns because of public exposure. To account for the moderated role of public exposure on conspicuous travel patterns, 36 Portuguese citizens were interviewed. Q-methods were applied to explore the varying senses of conspicuous travel choices among citizens with different levels of public exposure, both individually and relative to each other. Complementary qualitative methods were applied, in order to explore how the interviewees construct tourism conspicuous meanings that match their social or self-representations. The results suggest that social contexts moderate the ways in which individuals perceive and experience conspicuous travel. Further, the results show that public groups with higher exposure tend to prefer subtle signals of conspicuousness, in order to differentiate themselves from the mainstream

Global Financial Crisis: A Minskyan Interpretation of the Causes, the Fed’s Bailout, and the Future

This paper provides a quick review of the causes of the Global Financial Crisis that began in 2007. There were many contributing factors, but among the most important were rising inequality and stagnant incomes for most American workers, growing private sector debt in the United States and many other countries, financialization of the global economy (itself a very complex process), deregulation and desupervision of financial institutions, and overly tight fiscal policy in many nations. The analysis adopts the stages approach developed by Hyman P. Minsky, according to which a gradual transformation of the economy over the postwar period has in many ways reproduced the conditions that led to the Great Depression. The paper then moves on to an examination of the US government's bailout of the global financial system. While other governments played a role, the US Treasury and the Federal Reserve assumed much of the responsibility for the bailout. A detailed examination of the Fed's response shows how unprecedented - and possibly illegal - was its extension of the government's safety net to the biggest financial institutions. The paper closes with an assessment of the problems the bailout itself poses for the future

Economic Ideas and Institutional Change: Evidence from Soviet Economic Discourse 1987-1991

In recent years, institutional and evolutionary economists have become increasingly aware that ideas play an important role in economic development. In the current literature, the problem is usually elaborated upon in purely theoretical terms. In the present paper it is argued that ideas are always also shaped by historical and cultural factors. Due to this historical and cultural specificity theoretical research must be supplemented by historical case studies. The paper analyses the shift in ideas that took place in Soviet economic thought between 1987 and 1991. This case study, it is argued, may contribute to our understanding of the links between ideas and institutions. More specifically, it sheds new light on the issue of whether the evolution of economic ideas is pathdependent, so that they change only incrementally, or whether their development takes place in a discontinuous way that can best be compared with revolutions

Beyond Market Failures: The Market Creating and Shaping Roles of State Investment Banks

Recent decades witnessed a trend whereby private markets retreated from financing the real economy, while, simultaneously, the real economy itself became increasingly financialized. This trend resulted in public finance becoming more important for investments in capital development, technical change, and innovation. Within this context, this paper focuses on the roles played by a particular source of public finance: state investment banks (SIBs). It develops a conceptual typology of the different roles that SIBs play in the economy, which together show the market creation/shaping process of SIBs rather than their mere "market fixing" roles. This paper discusses four types of investments, both theoretically and empirically: countercyclical, developmental, venture capitalist, and challenge led. To develop the typology, we first discuss how standard market failure theory justifies the roles of SIBs, the diagnostics and evaluation toolbox associated with it, and resulting criticisms centered on notions of "government failures." We then show the limitations of this approach based on insights from Keynes, Schumpeter, Minsky, and Polanyi, as well as other authors from the evolutionary economics tradition, which help us move toward a framework for public investments that is more about market creating/shaping than market fixing. As frameworks lead to evaluation tools, we use this new lens to discuss the increasingly targeted investments that SIBs are making, and to shed new light on the usual criticisms that are made about such directed activity (e.g., crowding out and picking winners). The paper ends with a proposal of directions for future research

Measurement of Social Preference from Utility-Based Choice Experiments

Ever since the classical works of Smith and Veblen, economists have recognized that individuals care about their relative positions and status in addition to their own consumption. This paper addresses a new framework of choice experiments in order to specify the shape of utility function with preference externalities. Theoretical studies on social preference, which are conducted without estimating or calibrating important parameters of social preference and put forward various propositions in accordance with the parameters assumed, can refer to the parameters estimated in this paper. Our findings complement those of happiness studies which support the view of social preference. We show that preference externality is, on average, characterized by jealousy among Japanese respondents, and also that heterogeneity in social preference parameters is driven by differences in income levels, age, and gender