Veblen-Gut: When expensive equals desirable

A Veblen good is a product whose demand increases as the price rises - contrary to classic market theory. The high price signals exclusivity, prestige and social status, which makes the good particularly attractive to certain buyers. Typical examples are luxury brands, designer fashion or high-priced watches. The name goes back to the economist Thorstein Veblen, who coined the concept of demonstrative consumption.