special issue: The demand for distinction and the evolution of the prestige car

This paper studies the demand for a distinction good - the prestige car - and examines how this demand for distinction influences the evolution of the product. We focus on two very different sorts of distinction car: the Rolls Royce and the Ferrari. These two examples help us to articulate two polar approaches to the demand for distinction: distinction through antiquity and distinction through novelty. The paper sets out a model of the demand for distinction, and uses it to describe two trajectories along which the prestige car - and the demand for it - may evolve.