Grodner, Andrew; Kniesner, Thomas J. - Institute for the Study of Labor (IZA) - 2008
We examine theoretically demand in a two-good economy where the demand of one good is influenced by either a spillover … similar choices as others. A positive spillover effect increases the demand for the good with interactions, and a conformity … implication is that spillover in consumption increases the associated derived demand for labor and conformity in consumption makes …