Thorstein Veblen and Albert Bandura: A Modern Psychological Reading of the Conspicuous Consumer

Thorstein Veblen was a founding father of original, or old, institutional economics. The social and evolutionary usage of things and thoughts are at the center of Veblen's approach. In his studies, he dealt with psychological, social, anthropological and economic issues. The psychological content of Veblen's writing takes instinctive and habitual issues into consideration. The proposal of this paper is to revisit the psychology of Veblen's conspicuous consumer. In such a task, this paper discusses the role of observation and cognition in habit building, and their influence on the conspicuous consumer. It also introduces a psychological explanation of the importance of the leisure class to the conspicuous consumer. In order to build the analysis, this paper takes into account elements of Albert Bandura's vicarious learning. These elements are introduced to highlight vicarious observation as a key component of Veblen's conspicuous consumer.