Veblen good

Commodities are Veblen goods if people's preference for buying them increases as a direct function of their price.

It is claimed that some types of high-status goods, such as expensive wines or perfumes, are Veblen goods, in that decreasing their prices decreases people's preference for buying them because they are no longer perceived as exclusive or high status products. Similarly, a price increase may increase that high status and perception of exclusivity, thereby making the good further preferable. The Veblen effect is named after the economist Thorstein Veblen, who first pointed out the concepts of conspicuous consumption and status-seeking.




http://isplus.joins.com/life/social/200709/19/200709190958473736080200000802050008020501.html