Veblen effect
Sign in to saveAlso known as Veblen good, Veblen goods
Luxury good for which the demand increases as the price increases
Wikidata facts
- Instance of
- effect
- Subclass of
- luxury good
- Named after
- Thorstein Veblen
Show 2 more facts
- studied by
- microeconomics
- different from
- Giffen good
Sources (3)
via Wikidata · CC0
~6 min read
Encyclopedic overview
Veblen goods such as luxury cars are considered desirable consumer products for conspicuous consumption because of, rather than despite, their high prices.
A Veblen good is a type of luxury good for which the demand increases as the price increases, in apparent contradiction of the law of demand, resulting in an upward-sloping demand curve. They are named after American economist Thorstein Veblen who described the contradiction.
Excerpted from Wikipedia’s “Veblen effect” article, available under the CC BY-SA 4.0 licence.