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It's almost like Apple has uncovered a new kind of product microeconomics -- luxury commodity, a commodity product where luxury pricing increases demand. It's a
by zekevermillion 10y ago
It's almost like Apple has uncovered a new kind of product microeconomics -- luxury commodity, a commodity product where luxury pricing increases demand. It's a cheap way for consumers to signal upscale fashion.
(This is me appreciating the enemy's skill from afar. I do not personally like Apple products. Just as I prefer wearing paint-stained sweatpants and 10-year-old extra-large t-shirts, as well as running linux on 8-year-old workstation. My favorite "smart"phone is a blackberry classic.)
- boulos 10y agoI'm not sure if you were being sarcastic, but that's called a Veblen Good (https://en.m.wikipedia.org/wiki/Veblen_good https://en.m.wikipedia.org/wiki/Veblen_good) and many luxury items follow the same pattern.
- nsp 10y agoNitpick, luxury goods and veblen goods are distinct concepts. Veblen goods are generally considered theoretical (with the possible exception of things like stocks). For Apple laptops to be Veblen goods, you would have to believe that they would sell fewer laptops if they were cheaper, not just makes less money. You could make the case that it's all brand fetishism and Apple would sell fewer MacBooks than they do now if they cost $500 rather than $1000, but i find that fairly implausible.