Why the Devil Wears Prada: The Fashion Formation Process in a Simultaneous Disclosure Game Between Designers and Media
Wolfgang Gick and Evelyn Gick
Changes in the world of fashion from haute couture to prêt-à-porter, the introduction of the mass market as well as the democratization of fashion call for a new explanation of the fashion formation process. We offer a three-player cheap talk disclosure mechanism to explain why, after observing the collection of designers, the fashion media sometimes proclaim a new fashion, and why they often do not. This mechanism is more informative than one in which only one designer is consulted. Our paper extends the literature on fashion economics; our findings are in line with those of fashion experts.