When comparing Veblen’s theory of conspicuous consumption with Galbraith’s ideas on producer sovereignty in relation to the rational consumer choice theory, we must first define the rational consumer choice theory. The rational consumer choice theory is a neoclassical micro economical social theory that fundamentally states that we base our decisions on rational calculations in order to increase pleasure or profits and therefore minimise loses. The theory assumes that we always make prudent and logical decisions which provide an individual with the most benefit or satisfaction, given the choices that are available to them. In order to expand on the rational consumer choice theory, we must assume that an individual’s choice is ordinal, meaning
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Galbraiths ideas undermine all three theorists which we disgust in section A. Galbraith suggests that want creation aka producer sovereignty, changes the way in which consumers’ act as they’re no longer sovereign. When challenging modern capitalism, strong links between Galbraiths theory and the business models adopted by companies within the tech industry are evident. An example of this is Apple (Apple, 2016), Apple is a multinational technological organisation who produce a number of goods including phones and computers. Apple are well known for “innovative” ideas which change the manner in which we live our lives. When new goods are introduced such as the iPad, we are targeted by Apple through extremely successful marketing campaigns, this creates “want creation” as seen when the iPad was originally introduced (CBS News, 2010). Galbraiths ideas of producer sovereignty are very apparent when evaluating organisations such as Apple, we can say that producer sovereignty undermines the RCC as the consumer no longer has sovereignty in what they purchase and due to the role of modern capitalism on society this trend can be observed in multiple industry sectors. Galbraiths theory of producer sovereignty bares no reassembly to that of Veblen or Bourdieu even though it can be said that they also undermine the RCC, Galbraiths theory is very unique and offers a comprehensive insight into producer and consumer behaviour as well as the role in which modern capitalism
Galbraiths ideas undermine all three theorists which we disgust in section A. Galbraith suggests that want creation aka producer sovereignty, changes the way in which consumers’ act as they’re no longer sovereign. When challenging modern capitalism, strong links between Galbraiths theory and the business models adopted by companies within the tech industry are evident. An example of this is Apple (Apple, 2016), Apple is a multinational technological organisation who produce a number of goods including phones and computers. Apple are well known for “innovative” ideas which change the manner in which we live our lives. When new goods are introduced such as the iPad, we are targeted by Apple through extremely successful marketing campaigns, this creates “want creation” as seen when the iPad was originally introduced (CBS News, 2010). Galbraiths ideas of producer sovereignty are very apparent when evaluating organisations such as Apple, we can say that producer sovereignty undermines the RCC as the consumer no longer has sovereignty in what they purchase and due to the role of modern capitalism on society this trend can be observed in multiple industry sectors. Galbraiths theory of producer sovereignty bares no reassembly to that of Veblen or Bourdieu even though it can be said that they also undermine the RCC, Galbraiths theory is very unique and offers a comprehensive insight into producer and consumer behaviour as well as the role in which modern capitalism