ECONOMICS OF LUXURY – WHO BUYS LUXURY GOODS?

This paper provides an analysis of economics of luxury, more specifically of consumption behaviour focusing on buying luxury goods and their counterfeits. We employ data from own omnibus research in the Czech Republic in a discrete choice model with binary dependent variables and so determine a probability of certain action. Our results imply that people who buy luxury goods could be taken (and are taken) as role models for both supply and demand sides on the market with counterfeits. The data also implies that consumers, who buy luxury goods, buy fake goods as well.