ABSTRACT
This chapter first presents the standard economic model of consumer behavior, based on the notion of consumer sovereignty. You will learn how to graph a budget line and the rule for utility maximization derived from marginal thinking. This standard material is set in context by moving on to different perspectives on consumer behavior. The historical context of “consumer society” is summarized, along with research on the social and environmental contexts of modern consumerism. The chapter also considers the relationship between consumerism and well-being—does more money lead to greater happiness? The chapter ends with a discussion of public policy options that can reduce excessive levels of consumerism.
