The world is a highly competitive place, and becoming successful requires hard work, dedication, and luck. This is the view of today’s guest, Professor Robert Frank, who helps us unravel the nuance of conspicuous consumption trends and the role of luck in gaining financial success. Professor Frank is the emeritus Henrietta Johnson Louis Professor of Management at Cornell University and holds an MA in statistics and a Ph.D. in Economics from UC Berkeley. He is also a prolific author, having written 12 books, financial textbooks, and many peer-reviewed articles in journals such as the American Economic Review, Econometrica, and Journal of Political Economy. He is passionate about how policy can help drive positive consumer behaviour, reduce inequality, and increase individual happiness. His work has also focused on the role of luck in achieving financial success which he covers in his book Success and Luck. In this episode, we unpack how individuals can improve societal collective action, the role of policy in driving those changes, and how luck interplays with success. We discuss economic and financial relativism, the dangers of conspicuous consumption, how expenditure cascades occur, and what influences consumption trends in society. We also dive into the topic of luck, whether wealthy people are happier, what behavioural changes are needed to create a better society, and more. Timestamps 0:00 Intro 5:25 The role of economic & financial relativism in consumption trends. 19:59 What is a positional good? And how does it affect psychological well-being? 28:54 The relationship between the consumption of luxury goods & happiness. 32:46 The effect of the super-rich & social media on consumption. 38:48 Human capital & differences in income and outcome 49:19 The influence of luck on achieving a successful outcome 1:00:03 Are winner-take-all markets a good thing for society? 1:09:05 Advice for people to stay motivated and work hard 1:13:45 His approach on luck and meritocracy with young kids 1:17:14 Discussion on the idolization of financially successful people 1:22:58 The response of successful people to the book 1:35:40 Prof. Frank’s definition of success Participate in our Community Discussion about this Episode: https://community.rationalreminder.ca/t/episode-230-prof-robert-frank-success-luck-and-luxury-discussion-thread/20598 Books From Today’s Episode: Success and Luck — https://amzn.to/3uAuFsx Luxury Fever — https://amzn.to/3h5uG4D Principles of Economics — https://amzn.to/3BcHrBd The Winner-Take-All Society — https://amzn.to/3h4lxcD Links From Today’s Episode: Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Shop Merch — https://shop.rationalreminder.ca/ Join the Community — https://community.rationalreminder.ca/ Follow us on Twitter — https://twitter.com/RationalRemind Follow us on Instagram — @rationalreminder Benjamin on Twitter — https://twitter.com/benjaminwfelix Cameron on Twitter — https://twitter.com/CameronPassmore Prof. Robert Frank on Twitter — https://twitter.com/econnaturalist