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.
No comments :
Post a Comment