3 ms·
Sounds related to but subtly different from a https://en.wikipedia.org/wiki/Giffen_good https://en.wikipedia.org/wiki/Giffen_good.
by duality 8y ago
Sounds related to but subtly different from a https://en.wikipedia.org/wiki/Giffen_good https://en.wikipedia.org/wiki/Giffen_good.
- ghaff 8y agoOne important difference is that Giffen goods probably don't actually exist in the wild given that they depend on a somewhat contrived substitution effect.
- allenz 8y agoThe difference is that Veblen goods are luxury goods whereas Giffen goods are inferior goods (https://en.wikipedia.org/wiki/Inferior_good https://en.wikipedia.org/wiki/Inferior_good).
- jessriedel 8y agoWell, the mechanisms are generally different too. Giffen goods can exist even for simple models with homoeconomicus. Veblen good generally involve a signaling/status story.
- dredmorbius 8y agoBoth have a behaviour resulting from the purchaser's cost constraints.
- dredmorbius 8y agoSimilar in that supply-demand behaviours are pardoxical, though for different reason, at least topically. Considered as an informastion and signalling good, Veblen goods start more closely resemblin Giffen.