On the Liberty of the English: Adam Smith’s Reply to Montesquieu and Hume

This essay has two purposes—first, to identify Adam Smith as intervening in the debate between Montesquieu and Hume regarding the nature, age, and robustness of English liberty. Whereas Montesquieu took English liberty to be old and fragile, Hume took it to be new and robust. Smith disagreed with both: it was older than Hume supposed, but not fragile in the way Montesquieu claimed. The reason for this was the importance of the common law in England’s legal history. Seeing this enables the essay’s second purpose: achieving a more thorough and nuanced understanding of Smith’s account of liberty. This requires us to go beyond repeating Smith’s famous claim that modern liberty was the result of the feudal barons trading away their wealth and power for inane status goods. As I demonstrate, this is only one part of a much wider story: of liberty requiring, and also being constituted by, the rise of the regular administration of justice, and ultimately the rule of law. Although Smith’s history of the English courts and common law has been almost entirely neglected by scholars, it is indispensable to understanding both his reply to Montesquieu and Hume and his wider political theory of modern freedom.

Value of Goods During the Period of Russian Economic Transit Based on Barter Ads Analysis

The study proposes a method for modeling consumer perceptions of citizens during the late Soviet period and early 1990s based on newspaper ads for direct exchange of goods. The toolkit of social network analysis is used for modeling. To determine the range of status goods and the economic behavior features of citizens moving from the era of shortage to the era of market relations is possible thanks to created semantic networks.

Signaling Status: The Impact of Relative Income on Household Consumption and Financial Decisions

This paper investigates the importance of status in household consumption and credit decisions using data from the Survey of Consumer Finances linked to tract-level data in the American Community Survey. We find that relatively richer households in the census tract use more debt and spend more on high-status cars. Also, county-level evidence shows that the consumption of high-status cars is higher in more unequal counties. These results suggest that greater income heterogeneity might shape household consumption and credit decisions, as relatively richer households signal their higher status to their neighbors through the consumption of visible status goods. This paper was accepted by Tomasz Piskorski, finance.

Dual path effects of self-worth on status consumption: evidence from Chinese consumers

Purpose The purpose of this paper is to examine the effect of self-worth on status consumption, focusing on the mediation of self-enhancement and self-compensation and the moderation of power distance belief (PDB) in the relationship of threats to self-worth and consumer choice. Design/methodology/approach Experiments are used to collect data. Three studies are designed to test the relationship between self-worth, self-enhancement and self-compensation, PDB and status consumption. In total, 180 MBA students participate Study 1, 186 and 244 undergraduate students participate Studies 2 and 3, respectively. ANOVA and bootstrapping method are adopted to analyze the data by using SPSS version 19.0. Study 1 tests the influence of self-worth on status consumption; Study 2 examines the mediation role of self-enhancement and self-compensation; and Study 3 tests the moderation role of PDB. Findings Results indicate that situational self-worth perception has dual path effects on status consumption. Both improvements in – and threats to – self-worth have a positive impact on status consumption. Improvements in self-worth affect status consumption through the mediation of self-enhancement motives. Threats to self-worth affect status and non-status consumption through the mediation of the self-compensation motive. In the context of a threat to self-worth, compared with consumers with a low PDB, high-PDB consumers have higher purchase intention for status goods but not non-status goods. Research limitations/implications In this study, improvements in – and threats to – self-worth are momentarily manipulated. The authors present one product in each experiment, but what would happen if both status goods and non-status goods were shown to participants? Which one will the authors choose under different self-worth manipulations? And how long can the effects last? These questions should be answered in future research. Practical implications This research provides a venue for marketers to introduce and advertise status goods. Marketing practitioners should establish the link between self-worth and status consumption appeals. In the Asia-Pacific markets, Confucian value is important to consumers, and high power distance is important in Confucianism. Thus when developing markets in China, international companies should emphasize Confucian values in the design of advertisements or other promotional items. Further, marketing for status goods should attach importance to the expression of their symbolic meanings. Originality/value This study contributes to the literature on self-worth and status consumption. It also explores the dual path of the effect of self-worth on status consumption. The motives of self-enhancement and self-compensation are first proposed and tested to explain the mechanism, which differentiates the study from prior work and gives a more reasonable explanation for status and compensatory consumption. The moderation role of PDB delineates the boundary for the effect of a threat to self-worth on status consumption.

Service Robots Rising: How Humanoid Robots Influence Service Experiences and Elicit Compensatory Consumer Responses

Interactions between consumers and humanoid service robots (HSRs; i.e., robots with a human-like morphology such as a face, arms, and legs) will soon be part of routine marketplace experiences. It is unclear, however, whether these humanoid robots (compared with human employees) will trigger positive or negative consequences for consumers and companies. Seven experimental studies reveal that consumers display compensatory responses when they interact with an HSR rather than a human employee (e.g., they favor purchasing status goods, seek social affiliation, and order and eat more food). The authors investigate the underlying process driving these effects, and they find that HSRs elicit greater consumer discomfort (i.e., eeriness and a threat to human identity), which in turn results in the enhancement of compensatory consumption. Moreover, this research identifies boundary conditions of the effects such that the compensatory responses that HSRs elicit are (1) mitigated when consumer-perceived social belongingness is high, (2) attenuated when food is perceived as more healthful, and (3) buffered when the robot is machinized (rather than anthropomorphized).