According to the article, when people feel powerless, they're willing to pay higher prices for status-symbol iltems.

The authors of the study held three experiments. They asked the participants to recall a time when they had power over someone else, and then when someone else held power over them.

After people talked about when they felt powerless, they were willing to pay higher prices for fancy items like a rolex watch, a silk tie, or a fur coat-things that might send the signal "important". Interestingly, they weren't willing to pay higher prices for non-status symbol things like a minivan or a dryer.

The authors' conclusions? "It suggests that in contemporary America, people use consumer purchases to compensate for psychological states of insecurity."

That's especially scary in this economy. A purchase might give you a short term boost---remember the old joke about "retail therapy"? But if you spend money when you feel insecure, and if everyone is feeling insecure about the economy, it sounds like a downward spiral to avoid.....