Abnormal market behavior
where consumers purchase
the higher-priced goods
whereas similar low-priced (but not identical) substitutes
are available. It is caused either by the belief that higher price means higher quality
, or by the desire for conspicuous consumption
(to be seen as buying an expensive, prestige item). Named after its discoverer, the US social-critic Thorstein Bunde Veblen (1857-1929).