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The difference is that Veblen goods are luxury goods whereas Giffen goods are inferior goods (https://en.wikipedia.org/wiki/Inferior_good https://en.wikipedia.o
by allenz 8y ago
The 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.