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A Veblen good, by definition, doesn't have additional value due to real craftsmanship or any other tangible characteristic. It gains value because of it's high
by jotux 9y ago
A Veblen good, by definition, doesn't have additional value due to real craftsmanship or any other tangible characteristic. It gains value because of it's high price.
Compare this Louis Vuitton leather briefcase: http://us.louisvuitton.com/eng-us/products/porte-documents-voyage-ombre-010113 http://us.louisvuitton.com/eng-us/products/porte-documents-v...
To this Saddleback: http://www.saddlebackleather.com/thin-leather-briefcase http://www.saddlebackleather.com/thin-leather-briefcase
8x the price but the Saddleback likely has quality on par with, if not exceeding, the Louis. Sure, the Louis is probably very well made, but that has nothing to do with the price.
- int_19h 9y agoBack in the 90s in Russia (when this sort of thing was very much in vogue among the newly minted organized criminal / mobster class), there was a joke that went like this: - Hey man, look what a nice new tie I've got! $1500! - Dude, you're lame. They sell the same for $5k in the shop down the street.