Alexander Vyvey Declerck

  School of Business and Economics | Bachelor Economics and Business Economics

A Theory of Discrimination Induced Consumption

Alexander's elevator pitch
My thesis investigates the implications of discrimination (for example in the labor market) for group value and the consumption of conspicuous products among social groups. This is done by establishing a framework for which demand for a particular bundle of goods is dependent on the social position of distinct groups in society. A distinction is made between "identity preservation" and "identity switching". For both cases, theoretical results show that the seemingly inferior group in society consumes the conspicuous bundle more with the introduction of discrimination.