Working Paper: NBER ID: w27979
Authors: Alexander W. Butler; Bruce I. Carlin; Alan D. Crane; Boyang Liu; James P. Weston
Abstract: We quantify the value of social status using market prices for Delaware license plates. Delaware plates are numbered sequentially, are private property, and can be legally bequeathed or traded in a secondary market. License plates offer no direct economic benefit other than authorizing the operation of a motor vehicle. But they appear to be a source of social status. Not only do market prices suggest a preference for lower plate numbers, but there exist extreme price jumps that indicate that exclusive clubs exist whereby the number of digits on the plate convey implicit membership. The aggregate value of this market indicates that people purchase status as a significant portion of their consumption bundle. Finally, social status as an asset appears to be uncorrelated with aggregate economic and market conditions.
Keywords: No keywords provided
JEL Codes: D01; D12; D71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| number of digits on the plates (Y20) | market prices for Delaware license plates (R48) |
| lower plate numbers (Y10) | higher social status (Z13) |
| higher social status (Z13) | willingness to pay more for lower-numbered plates (R48) |
| market prices for Delaware license plates (R48) | proxy for the value of social status (Z13) |
| market prices for Delaware license plates (R48) | unaffected by broader economic conditions (F69) |