Regarding the sneaker example, this is an example of a Veblen good, which are bought specifically for the status given to the brand or product: http://en.wikip

Regarding the sneaker example, this is an example of a Veblen good, which are bought specifically for the status given to the brand or product: http://en.wikipedia.org/wiki/Veblen_good http://en.wikipedia.org/wiki/Veblen_good (There's also Giffen goods, which are similar, but where the lower priced product is inferior. This means that consumers will substitute the product for another if they have the money to do so.)