Veblen Goods: Buying to Show Off
Conspicuous Consumption
Why do people buy a 10 Casio? Because the point is not to tell time. The point is to tell people you have $500,000.
These are Veblen Goods. Their value comes from their high price. If the price dropped, people would stop buying them because they would no longer signal status.
The Status Game
We are social primates obsessed with hierarchy. Veblen goods act as costly signals of fitness. We waste resources to prove we have resources to waste. Ask yourself: Are you buying this because you like it, or because you want others to know you can afford it?
Thorstein Veblen
Editorial DeskThe OIYO editorial desk researches money, law, lifestyle, and self-understanding topics against primary sources and public statistics. Every piece carries source notes and is reviewed on a regular cycle for accuracy and usefulness.