Veblen effect

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Veblen effect

a theory of CONSUMPTION that suggests that consumers may have an UPWARD-SLOPING DEMAND CURVE as opposed to a downward-sloping DEMAND CURVE because they practice CONSPICUOUS CONSUMPTION. A downward-sloping demand curve implies that the quantity demanded of a particular good varies inversely with its price (as price increases, quantity demanded falls). The Veblen effect suggests that quantity demanded of a particular good varies directly with a change in price (as price increases, demand increases). See also VEBLEN, INCOME EFFECT, ENGELS LAW.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
class="MsoNormalVEBLEN GOOD class="MsoNormalEducation as a Veblen good makes parents appreciate education only when it gives their children an edge over their contemporaries.
This continued commoditisation of the sector has made education assume the qualities of what economists call Veblen goods. class="MsoNormalIn a normal demand curve, when the price of a commodity increases, its demand reduces.
Imported from Turkey in the late 1500s, tulips were a status symbol, so it is reasonable to assume that the beautiful and durable flowers took on the characteristics of a Veblen good (we discussed Veblen goods in A Digression on Diamonds) whereby higher prices spurred more demand and, therefore, higher prices.
Throughout the LP, Ojeda demonstrated his knack for empathetic collaborations with various vocalists, but the hook-laden earworms "Home" and "Summer," both featuring New York-based artist Veblen Good, were stand-outs.
If every branded car is a Veblen good - that is, something you want precisely because it is expensive, to flag to the world your ability to own it - then the Volvo is a peculiar inversion, the car you buy that looks less flash than it is, to show the world that you're not the kind of person who shows off what they've bought.
3D-printed may lose its status as a Veblen good as scarcity requires
authentic Veblen goods are harmed because the loss of perceived scarcity
In a city where food items have turned into Veblen goods (think P600 bags of salted egg potato chips), an P800 meal is cheap for conspicuous consumption.
In actuality, Veblen goods account for only thirteen percent of all counterfeit products (Government, 2013).
If these are so-called Veblen goods - those of which people consume more when the price rises - then this is one potential tax rise whereby the amount of tax raised increases by more than the implied increase in the tax rate.
They call these "Veblen Goods." They actually show mathematically that we end up poorer when we compete by buying stuff.