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“Demand for status is psychological in nature.” Cross-referencing spending habits with psychological tests, the researchers found that increasing self-esteem causally reduces demand for status goods.(The study was carried out by economists from the University of Chicago, The World Bank, Sao Paulo School of Economics, Harvard University and University of California, Los Angeles.) There’s one real-world drawback: Consumers may use the platinum card in social situations when they’re better off using a less prestigious card. “While the card used in our study does not offer cash back rewards, at least 48% of platinum customers report owning other credit cards which do offer cash back at restaurants and similar transactions.” In order to appear wealthier, in other words, customers may actually forgo money in the form of cash rewards each time they use the platinum card instead of other cards in those situations.Browse thousands of Limpopo black personal ads and black singles — all completely free.

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Economists worked with an Indonesian bank that markets premium platinum credit cards to high-income customers.

“Demand for the platinum card greatly exceeds demand for a nondescript control product with identical benefits,” according to the study distributed Monday by the National Bureau of Economic Research, a Cambridge, Mass.-based research group.

What’s more, the lower your self-esteem, the more likely you will opt for flashy credit cards with higher fees.


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