Scientific Definition
Demand rises with price because the price itself signals status.
Plain-English Definition
Demand rises with price because the price itself signals status.
Feynman Explanation
If it were cheaper, nobody would want it.
Core Principle
Demand rises with price because the price itself signals status.
Mechanisms
Pending editorial review.
Demand rises with price because the price itself signals status.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Pending editorial review.
Discounting a Veblen good is brand demolition.
Inputs (Triggers)
Pending editorial review.
Outputs (Behaviors)
Pending editorial review.
Behavioral Signature
If it were cheaper, nobody would want it.
Examples
- Luxury watches and handbags where a discount destroys appeal.
- Discounting a Veblen good is brand demolition.
Pending editorial review.
Famous Experiments
Pending editorial review.
Design Principles
- Protect price as the product. Never discount status goods.
Measurement Approaches
Pending editorial review.
Evidence
Pending editorial review.
Pending editorial review.
The Perverse Incentive Lens™
How this behavior is exploited — and how to redesign around it.
- Protect price as the product. Never discount status goods.
Pending editorial review.
Pending editorial review.
Interactive Mini Network
Click any neighbor to re-center the graph and follow the threads of connection.
Knowledge Graph Neighbors
Auto-linked to the rest of the Human Behavior Taxonomy by family, domain, dimension, and shared keywords.
Owning something raises its valuation — sellers want more to give it up than buyers will pay to acquire.
Customers become trapped in a product due to switching costs or network effects.
Demand for a good drops as more people own it.
Exploiting price differences between markets for risk-free profit.
The study of how real humans actually decide — bounded, social, emotional, and inconsistent.
With clear property rights and low transaction costs, parties negotiate to efficient outcomes.
Specialize in what you give up the least to do.
Complements raise each other's value; substitutes lower it.
Fixed costs don't scale with output; variable costs do.
Innovation destroys old industries and creates new ones.
Each additional unit produces less marginal benefit.
A long-run planner self in conflict with a short-run impulsive self.