Veblen Good

Next video:
Loading the player...

Named after economist Thorstein Veblen, who introduced the term “conspicuous consumption,” a Veblen good is one whose demand increases as its price increases because consumers see it as an exclusive status symbol. Unlike most goods, which have a downward-sloping demand curve because demand goes down as price goes up, a Veblen good has an upward-sloping demand curve.

Veblen goods are high quality, coveted items. They are designer, luxury items with a strong brand identity, and they are not sold in regular stores. These goods are priced so high that only the very affluent can afford them; the higher their price, the less likely other consumers can afford them, and the more buyers perceive them to signal great wealth and success. If a Veblen’s good price decreases, demand will decrease because status-conscious consumers will see it as less exclusive.

Related Articles
  1. Markets

    Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  2. Savings

    Understanding The Difference Between Spending And Investing

    Learn more about the difference between investment and spending, and why it is an important distinction to make.
  3. Home & Auto

    What Young People Are Spending Their Money On

    With consumer spending falling and hindering the chances of an economic recovery in the U.S., we look at Millennials and how they are spending money in 2012.
  4. Personal Finance

    The Spending Habits Of Americans

    Here is an economic portrait of the average American consumer, based on recent spending habits.
  5. Savings

    5 Ways To Control Emotional Spending

    Follow these five simple steps to keep your spending under control.
  6. Budgeting

    9 Ways To Trim The Fat From Your Spending

    Bad spending habits are not always obvious. What could you be doing to ensure that your money's going where it should?
  7. Options & Futures

    50 Years Of Consumer Spending

    Financially, decade has it MUCH worse than our parents and grandparents did, right? You may be surprised.
  8. Stock Analysis

    Will J.C. Penney Come Back in 2016? (JCP)

    J.C. Penney is without a doubt turning itself around, but that doesn't guarantee the stock will respond immediately.
  9. Mutual Funds & ETFs

    Should Investors Take a BITE Out of This New ETF?

    ETF BITE offers a full menu of restaurants. Is now the right time to invest?
  10. Stock Analysis

    The Biggest Risks of Investing in Sears Stock

    Learn about the factors that have led to Sears Holdings' underperformance the past several years and where the ailing retailer could be heading in the future.

You May Also Like

Hot Definitions
  1. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  2. Bullish Engulfing Pattern

    A chart pattern that forms when a small black candlestick is followed by a large white candlestick that completely eclipses ...
  3. Cyber Monday

    An expression used in online retailing to describe the Monday following U.S. Thanksgiving weekend. Cyber Monday is generally ...
  4. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  5. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
Trading Center