Friday, September 13, 2013

[qcdibssq] Where Veblen goods

Veblen goods are likely to be found in things an individual buys very rarely, cares about high quality, but it is a large hassle to discover high quality (perhaps goods are highly customized to each consumer).  So the consumer uses price as a proxy for quality.

Accordingly, we expect to find business models built around this as a scam, perhaps trying to limit the flow of useful information between consumers.

Luxury goods.

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