The theory that some consumption expenditures are undertaken not to maximize independent individual utility functions, but to impress other people. Consumers who spend in order to display their wealth will not necessarily prefer cheaper goods to dearer ones, provided a high price is well publicized. The existence of conspicuous consumption casts doubt on welfare economics based on rational choice by consumers with independent tastes.

• trough
• true and fair view
• trust
• trustee
• t test
• TUC
• turnkey project
• turnover
• turnover tax
• two-gap model
• two-part tariff
• two-stage least squares
• two-tier board
• type I and II errors
• unbiased estimator
• unbundling
• uncertainty
• uncompetitive
• UNCTAD
• undated security
• under-capitalized
• under-developed country
• under-funded pension scheme
• underlying rate of inflation
• under-subscription