In which economic practice is wealth displayed for social prestige?

The concept of displaying wealth for social prestige is most accurately captured by conspicuous consumption. This practice involves individuals or groups purchasing and showcasing goods to signal wealth and social status rather than to fulfill basic needs. It is associated with the idea that consumption becomes an expression of identity and social hierarchy, as individuals strive to demonstrate their economic prowess and achieve recognition within their social circles.

In contrast, potlatch, while closely related, primarily pertains to indigenous cultures, particularly among Pacific Northwest Native American tribes, where the redistribution of wealth through ceremonial gift-giving serves as part of a social structure and plays a role in social relations, but it does not align strictly with the broader notion of conspicuous consumption.

Generalized reciprocity focuses on exchanges where one party gives something to another without an immediate expectation of return, highlighting the importance of social relationships rather than status display. Balance reciprocity refers to exchanges that involve a direct return of equal value, emphasizing fairness and balance in relationships rather than the display of wealth for prestige.

Therefore, conspicuous consumption is the most fitting answer as it directly relates to the act of showcasing wealth for social recognition and prestige.