Noun
(plural Veblen goods)
- A good for which people's preference for buying them increases as a direct function of their price, as greater price confers greater status.
Usage notes
These should not be confused with Giffen goods, for which price rises increase purchases not because consumers enjoy the goods any more but simply because consumers have less purchasing power. For Veblen goods, purchases increase because the good is enjoyed more (e.g. for status reasons) when its price is higher.
Origin
Named after economist Thorstein Veblen, who first pointed out the concepts of conspicuous consumption and status-seeking .
