Segmented communication and fashionable behavior

Fashions are characterized by fragility of mass behavior and a Life-cycle t rajectory. We argue that fashions may be generated by the simultaneous pres ence of local externalities and word-of-mouth communication. We develop a m odel based on these two ingredients and show that in order for fashions to arise, communication has to be segmented across social groups. Our explanat ory framework is consistent with views of sociologists and marketing expert s about fashion. (C) 1999 Elsevier Science B.V. All rights reserved. JEL cl assification: D11; M30.