Consumer Perceptions, Preferences, and Behaviour

This dissertation investigates how socio-economic context and individual perceptions shape economic behaviour and policy preferences. Drawing on behavioural economics and social comparison theory, it explores how concerns about relative standing and biased beliefs generate systematic deviations from the predictions of standard economic theory. The dissertation consists of a synopsis and three empirical chapters. The synopsis outlines the theoretical framework, research questions, and methodological approaches, situating the analyses within broader debates on social comparisons, belief formation, and decision-making under inequality and policy constraints. The second chapter examines how rising income inequality affects household consumption and saving behaviour through status competition. The third chapter investigates how perceptions of consumer spending as visible and status relevant vary across socio-demographic groups. The fourth chapter analyses how personalised information about the household-level costs of carbon pricing shapes individuals’ support for carbon pricing under current and higher projected price levels. Overall, the dissertation highlights the central role of individual beliefs and perceptions in shaping economic behaviour and political attitudes during periods of economic and ecological transformation. It provides evidence for more behaviourally informed policy design in the fields of inequality, consumption, housing, and climate policy. The findings further underscore the importance of public policy and public service provision in reducing social inequalities, mitigating status-driven overconsumption, and strengthening societal support for socio-ecological transformation processes.