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SSRN Electronic Journal
Article . 2008 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2008
Data sources: EconStor
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Social Interactions in Demand

Authors: Grodner, Andrew; Kniesner, Thomas J;

Social Interactions in Demand

Abstract

We examine theoretically demand in a two-good economy where the demand of one good is influenced by either a spillover effect in the form of an externality from other consumers' choices and or a conformity effect representing a need for making similar choices as others. A positive spillover effect increases the demand for the good with interactions, and a conformity effect makes the demand curve pivot around the average market demand to make demand less price sensitive. The collateral implication is that spillover in consumption increases the associated derived demand for labor and conformity in consumption makes the associated derived demand for labor less elastic. Finally, we also demonstrate how the presence of a good with social interactions affects the demand for the good without social interactions and the associated demand for the labor producing the non-interactions good.

Country
United States
Related Organizations
Keywords

spillover, social interactions, consumer demand, conformity, labor demand, Spillover-Effekt, spillover, Economics, ddc:330, Arbeitsnachfrage, tbd, Consumer demand, labor demand, Elastizität, Soziale Beziehungen, social interactions, Konsumtheorie, Konsuminterdependenz, Theorie, D11, conformity, jel: jel:D11

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    popularity
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    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
bronze