Income, Cultural Norms and Purchases of Counterfeits

Philip Hans Franses and Madesta Lede

No EI 2012-26, Econometric Institute Research Papers from Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute

Abstract: We conjecture that individual purchases of counterfeit products could be motivated by income and prices, but that another driver is cultural norms. To put the latter conjecture to an empirical test we make use of the unique situation of Surinamese people who live in Suriname and in the Netherlands and who might share the same norms and values but certainly not their respective income levels. Holding newly collected data from surveys amongst Surinamese individuals in the Netherlands and in Suriname against a control group of Dutch individuals in the Netherlands, we present evidence that cultural norms are indeed a key driver for purchases of counterfeit products. Implications for policy are discussed.

Keywords: consumer behaviour; counterfeit products (search for similar items in EconPapers)
JEL-codes: D12 D63 F13 F53 (search for similar items in EconPapers)
Date: 2012-07-01
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