Eaton, B. Curtis; Matheson, Jesse A. - In: Journal of Economic Behavior & Organization 91 (2013) C, pp. 159-178
We explore the link between affluence and well-being using a simple general equilibrium model with a pure Veblen good. Individuals derive utility from the pure Veblen good based solely on how much they consume relative to others. In equilibrium, consumption of the pure Veblen good is the same...