How do firms develop marketing strategy when consumers seek to satisfy both quality and status-related considerations … considerable social payoffs where consumers value status. This insight reverses the direction of causality in the existing … literature, wherein only status considerations matter and mere price increases may enhance consumer utility. Second, our dynamic …

interaction often leads to questionable results with regard to the market demand function for status goods. Following Spence, who … provides a game theoretical derivation of the market demand function for status goods with respect to level and distribution of … buy the good (a status good in a narrow sense). If (3) the price is located in a very high as well as in a middle range …