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Custom clothing is used to signal wealth, so past a certain point, more expensive actually becomes more desirable. It happens when something is supply constrai
by eucyclos 7mo ago
Custom clothing is used to signal wealth, so past a certain point, more expensive actually becomes more desirable.
It happens when something is supply constrained and a costly signal. Universities are the classic example, Harvard would never lower its prices to be more appealing than Yale.
- thaumasiotes 7mo ago> Universities are the classic example, Harvard would never lower its prices to be more appealing than Yale. This would sound more convincing if Princeton hadn't already done that exact thing.
- eucyclos 7mo agoWell, obviously there's an upper limit to that game, but I would bet Princeton's issue wasn't that they were failing to fill classrooms at the higher price point.
- robocat 7mo agoApparently further beyond "Veblen", price stops being a signal because the very wealthy have money. The signal has to change to other more scarce resources: https://news.ycombinator.com/item?id=47265889 https://news.ycombinator.com/item?id=47265889
- snowwrestler 7mo agoHarvard’s signal is how hard it is to get in. There are less prestigious universities with a higher sticker price. Bad example, but I agree with your point in general.