Veblen good

Luxury cars are an example of Veblen goods, particularly at the higher end.This image shows the Rolls-Royce Phantom

In economics, a Veblen good is a good whose preference and consumption increases with its price. This is against the Law of supply and demand. The goods are named after Thorstein Veblen, who first described the effect of conspicuous consumption in 1899. Veblen goods are often also positional goods.

Veblen Good Media

• 

  Veblen goods have an upward-sloping demand curve.

• 

  Expensive Champagne is an example of a consumable Veblen good.

• 

  The stainless steel Rolex Daytona frequently sells for over its list price