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Apr 2Doug Smith

Buzzword of the Week: Veblen Good

Apr 2Doug Smith

Here’s a term from Investopedia that I’d never heard of before. Veblen goods are perceived to be exclusive as long as prices remain high or increase. Veblen goods get their name from economist Thorstein VLamborghini_part-time cfo washington dc areaeblen, who was one of the first to look into and write about conspicuous consumption and the concept of seeking status through consumption.

Veblen goods are often referred to as “status symbols.”

High-status items such as luxury cars, expensive shoes or pricey watches remain appealing to certain consumers as long as prices remain high or increase. A decrease in the price of a Veblen good could cause it to become less exclusive, which may reduce consumers’ fondness for it.

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