THE INFLUENCE OF VANITY ON ECONOMIC BEHAVIOR

Nara Rela

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Decision-Making and Behavioral Economics Economic Theory and Institutions Emotions and Moral Behavior

Abstract

Vanity underlies human behavior and can be expressed in various forms in social, moral, aesthetic, and economic fields. It is an emotional complex that encompasses narcissism and histrionics as character traits, as well as other functions such as memory, imagination, cognition, and instinctive drive. Using a psychological-philosophical approach, this study explores the influence of vanity on economic behavior, detailing vanity within social interactions between an agent who exhibits vanity and a spectator who observes, particularly in the context of mutual comparison related to external signs of wealth.

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