Veblen Good

Veblen goods, named after Norwegian-US economist Thorstein Veblen (1857-1929), up-end the traditional notion of price and demand moving inversely. The price of Veblen goods rises in line with demand. Consumers buy goods as the price rises because they believe the higher price reflects higher quality and/or because they derive greater benefit from consuming expensive goods. This is partially because of their perceived ability to impress others. Designer clothes and expensive jewellery, wine, watches are examples of Veblen goods.