“Behind the Price Tag of the Most Expensive Watches in the World” — Wall Street Journal, 2021, 6:10 — https://www.youtube.com/watch?v=vW_Lkdh117o
This video describes the concept of Veblen goods using expensive watches as a case study. Veblen goods are those where higher prices result in higher demand among members of the upper class. They are like status symbols on steroids and only obtainable by the super-wealthy. Hence, you will never see a Veblen good go on sale or be discounted as this would tarnish its exclusive appeal. They also appear to be immune from price drops or sales dips associated with economic recessions and depressions. Finally, the video mentions Thorstein Veblen as an economist, but he is also considered a sociologist and gave us the concept of conspicuous consumption.
What other examples of Veblen goods can you think of?
From the video’s description: Expensive materials, delicate craftsmanship, and an economic principle that turns the usual equation of supply and demand on its head. WSJ explains why some watchmakers can charge hundreds of thousands of dollars for a single timepiece.