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| Topic: |
Biographies
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| Number of pages / Number of words: |
4 / 1073 |
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The snob effect is seen when an individual's demand is decreased due to the assumption or knowledge that others are consuming the good. Therefore, the individual consumer's demand is negatively correlated with the market demand. One way to think about this can be to say it is the "opposite" (but completely symmetrical) of the bandwagon effect...
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For example, if you notice that many people are driving "Ford" cars, due to the snob effect, your desire (demand) to drive a "Ford" car will decrease. Thus, you will likely drive a "Chevy" car, in order to be exclusive or unlike the crowd. The graph (figure 3) showing the snob effect, contains demand curves that are independent of the snob effect, and the market demand in response to the snob effect...
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