The Dynamics of Conspicuous Consumption
Veblen Model: the Envy Rule
This is an exemplary model
that shows our approach in the context of an
intuitive and well-known problem.
Primary sources: Friedman, 2001;
see also Friedman and Yellin, 1997, and
also Friedman and Yellin, 2001.
There are two basic flavors of conspicuous consumption,
as described in the literature: envy and pride.
For the present, we restrict attention to the envy model.
In our implentation of the model,
the initial distribution may be constructed.
(See the explanation below.)
- Explanation rev 5.x
- Explains the math, the interface, and recommended experiments
- Notes rev 5.x
- Explains the math, PDF format
- Applet rev 5.3
- The applet has been created with NetLogo 2.0.0.
- It will run in any browser that supports Java 1.4 applets.
- Pops up in a separate window, so explanation can be viewed here.
- NetLogo Model rev 5.3
- This page is the NetLogo program code, as plain text.
- If you have NetLogo 2.0.0 or higher, you may select this file,
then SaveAs Veblen.nlogo on your Desktop, and Open it in NetLogo.
- NetLogo Code rev 5.3
- This is the 284 line program for Veblen.
- Simulated Hump Movie
- Animated GIF of Veblen Rev 5.2, 300 KB download
- Shows a heap of consumers attracted to a delta function.
- Analytic Hump Movie
- Animation of the analytic solution, made with MATLAB and GIFfun.
- Follows closely the derivation in the Appendix.
- Two Trains Movie
- Animated GIF of Veblen Rev 5.2, 125 KB download
- Shows a two trains of consumers attracted to a delta function.
- Annotated bibliography for conspicuous consumption.
Revised 29 April 2005 by Ralph Abraham