Economic analysis of conspicuous waste: historical overview and modern approaches

Abstract

Both conspicuous waste practices and their analysis have undergone significant changes since Veblen first defined them in his “Theory of leisure class” over a century ago. The article provides a comparative interdisciplinary overview of the approaches to the analysis of the economic practices of conspicuous waste. The first part of the article focuses on original approach to conspicuous waste that was proposed by Veblen, who suggested that such waste allows economic agents to maximize a special kind of utility. As this approach assumes that conspicuous waste works as a quasi-language system where the information about social status and wealth of the person is being coded, transferred and decoded, the article suggests naming it “semiotic approach”. The next part of the article considers the development of this approach in the works by Galbraith, Baudrillard, and Douglas and Isherwood. Both advantages and limitations of this approach are being considered, and possible alternative approach, based on the application of behavioral economics, is being suggested. The final part of the article provides an application of the received findings to the analysis of the modern digitalized practices of conspicuous leisure. Thus, the article examines the influence of digitalization on the dynamics between conspicuous consumption and leisure, the ways economic practices of conspicuous waste have changed within the framework of social media, and the impact of this change on the modern labour/leisure balance.