Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. k EUREQua, Universit ¶ e Paris-1 Panth ¶ eon-Sorbonne. Terms of use: Documents in AbstractThe paper develops a signalling theory of conspicuous consumption where the drive toward spending on an otherwise unuseful good comes from the desire to enter clubs and bene¯t from the provision of club good¯nanced by members of a club and from a social status e®ect. Individual incomes are unobserved and admission to a club is based on the inference of an individual's capacity to contribute to the public good.By entering in a club, individual also gain a certain social status. This inference in turn is based on the signal emitted by spending on a conspicuous good. Because of the joint incentives of club good and social status, people may be induced to over-spend in the conspicuous good. We characterize both the pooling equilibria and the separating equilibria of the signalling game played by individuals. We then ask whether taxation can be Pareto-improving and which tax scheme would be chosen by the median voter in this society.
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