In economics we learn that as prices rise, demand falls. This happens because we assume that rational customers are looking to buy things that provide the most value for the least expense. But there’s a class of goods that don’t behave this way: Velben goods.
Veblen goods defy classical economics. Named after Thorstein Veblen, an American economist, these products become more desirable as they become more expensive. These goods are more desired not from the needs they fulfill but from their ability to signal status, exclusivity, and wealth.
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