It is also important to remember that in realizing the bandwagon, snob and Veblen effects, the basic assumption that consumers' consumption behavior is independent of the consumption of others, must be ignored. The bandwagon effect is observed in cases where individuals try to "fit in". This effect occurs when the demand for a certain good increases, based on the assumption or knowledge that other consumers are also consuming the same good. This effect is most easily described using the example of fashion or clothing. People often like to have the latest fashion and wear what is in fashion. They look at people they admire or see what their favorite celebrities or even their friends are wearing. The individual's desire (demand) to own and wear the latest fashions will also increase, because he or she has observed those fashions as what is popular. This is a very simple way to explain the bandwagon effect, and it's an example that most people have witnessed or experienced personally. The graph (Figure 1) showing the bandwagon effect on the demand curves of different individuals and on the market demand, shows that the market demand curve is very elastic. That is, it is sensitive to changes in prices and also to quantity demanded. This means that if many people consume a good, demand is greater than if fewer people consume the good. To clarify further, let's take the example of attending college. In an environment where most of an individual's peers will attend college, the individual will see college as the right thing to do and will also attend college to be like his or her peers. However, in an environment where most of an individual's peers will not attend college, the individual will have a reduced demand for college and is unlikely to attend college. This brings up the next point regarding the bandwagon effect; the taboo effect. Essentially the taboo effect shows the same type of consumer behavior, but in the opposite direction. Therefore, if you notice that a group is not consuming a certain good, you will see the good as a "social taboo" and will not consume the good. The social taboo effect on demand is a special case. In the graph (figure 2) the demand curve crosses the x axis in negative territory. This implies that the consumer should be rewarded or paid for even considering consuming a particular good.
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