Veblen Goods

Goods that increase in demand as price goes up.

• Luxury goods
• Pharmaceuticals

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Key Insights & Principles

Business & Marketing

1. With particular types of goods, such as luxury goods and pharmaceuticals, the demand can increase with price.
2. Humans tend to associate higher price with higher quality, and low price with low quality.
3. Spending money is a way to signal wealth or status, and the appeal of Veblen goods is the high price which means exclusivity.

1. Invest in and market higher end goods.
2. Avoid dropping prices to improve long term market share.

Book References