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Consuming Symbolic Goods: Identity & Commitment – Introduction

Only in recent times is attention from economists moving to the topic of consumption, even as Adam Smith claimed in his Wealth of Nations that consumption is the sole end of production. One reason for this increased attention may be that consumption patterns become increasingly fickle. Further, and in contrast to the intuition of economists, considerations about price, given people's budget constraints, seem to play a minor role for consumers in making decisions about what to buy. This seems especially true for what might be called "symbolic goods", goods that people define themselves in terms of, goods the consumption and use of which helps constitute people's identity, goods that communicate the kinds of commitments people have. Archaeologists and anthropologists claim that the use of symbols for purposes of communication with others indicates that complex use of language and (more) sophisticated thinking emerged in man, but they bicker about the exact timing for this emergence. What is important in terms of this special issue on the consumption of symbolic goods is that insights from outside of economic theory proper become increasingly relevant to properly understand such behavior. Social and Institutional economics, for which the Review of Social Economy is among the most influential outlets, is in a position to shed light on what it is that makes people consume. Ideas and concepts that are central in such analyses are the identity of individuals, and commitment to that identity. The active involvement of people in the things they consume is most evident when they consume what might be called "symbolic goods". Symbolic goods may be defined as goods that people buy to signal their identity with. Obvious examples are clothes, cars and music, but food often is a symbolic good as well. A bone of contention in the analysis of consumption that a focus on identity and commitment uncovers is if and how the social environment influences people in their consumption behavior. Contributors to this issue take different positions on this, as will be apparent when one studies the subsequent articles. What are the elements in the social environment that affect people's consumption behavior, and how should one understand the interaction between the individual and the environment? Some contributions in this special issue approach this matter in a more fundamental, almost philosophical way than others who focus more on empirical phenomena seemingly do. …