The Snop Effect in the Consumption of Luxury Goods

Abstract

Despite the global crisis in the world the importance of the consumption of luxury goods is not reduced. This situation mak es the examination of the various aspects of the consumption of luxury goods interesting. In this study, we primarily fo cused on the definition and effects related to the consumption of luxury goods in general theoretical framework. Then one of the effects of commodity price increases, which decreases the accessibility of the individual to increase the consumption of luxury goods, which expresses the snop effect is studied in detail. In this study, basic elements of a consumer's consumption of goods as a result of snop effects are taken into account, and also a monopoly firm's strategies to meet the snop goods demand is tried to be evaluated.