A person's incentive to spend additional money on conspicuous consumption goods will be ____to the amount and reliability of independent information that people have about his abilities.

Question

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The more independent information people have about a person's abilities, the less incentive they will have to spend additional money on conspicuous consumption goods. This is because people will be more likely to base their judgments on the person's actual abilities rather than their consumption of expensive goods. Therefore, as the amount and reliability of independent information increases, the incentive to engage in conspicuous consumption decreases, leading to an inverse relationship between the two.

A Person's Incentive to Spend Additional Money on Conspicuous Consumption