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04-Feb-2017 20:33

“Demand for status is psychological in nature.” Cross-referencing spending habits with psychological tests, the researchers found that increasing self-esteem causally reduces demand for status goods.

(The study was carried out by economists from the University of Chicago, The World Bank, Sao Paulo School of Economics, Harvard University and University of California, Los Angeles.) There’s one real-world drawback: Consumers may use the platinum card in social situations when they’re better off using a less prestigious card. “While the card used in our study does not offer cash back rewards, at least 48% of platinum customers report owning other credit cards which do offer cash back at restaurants and similar transactions.” In order to appear wealthier, in other words, customers may actually forgo money in the form of cash rewards each time they use the platinum card instead of other cards in those situations.

Those marriages also tend to be happier and more stable than for couples that met in traditional face to face meetings.

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