Shemesh, JoshuaZapatero, Fernando2022-04-212022-04-212016-05-05Shemesh, Joshua and Zapatero, Fernando, The Intensity of Keeping Up with the Joneses Behavior: Evidence from Neighbour Effects in Car Purchases (May 5, 2016). Available at SSRN: https://ssrn.com/abstract=1805206 or http://dx.doi.org/10.2139/ssrn.1805206https://hdl.handle.net/2144/44269We show that status-driven behaviour is largely determined by how connected a community is. Using a unique dataset on car purchases in Southern California, we show that social influence intensifies in suburban communities in which neighbours are likely to know each other well. The effect of connected communities cannot be fully explained by word of mouth, as it spills over across different makes, and is particularly apparent in higher price segments. We argue that, in connected communities, the signalling of income or wealth through the public display of consumption has a substantial effect on the behaviour of neighbours.en-USArticle478959