The Price Paradox: Why Some Luxury Goods Get More Popular When Costlier

These items are known as 'Veblen goods,' named after economist Thorstein Veblen, who introduced the concept of 'conspicuous consumption' in his 1899 work, *The Theory of the Leisure Class*. For Veblen goods, the high price itself is a crucial part of their appeal, signaling exclusivity, prestige, and the purchaser's wealth. If the price were to fall significantly, the product might lose its status symbol appeal, causing demand to drop, illustrating a fascinating exception to standard supply-and-demand principles.