Veblen good

A Veblen good is a type of luxury good where demand increases as the price increases, contradicting the law of supply and demand, resulting in an upward-sloping demand curve. Higher prices make them desirable as a status symbol, like expensive watches and cars.

Not all luxury goods are Veblen goods. Some luxury items do in fact provide a premium experience or feature. Veblen goods typically are purchased as a sign that someone can afford to purchase it.

Veblen goods are named after American economist Thorstein Veblen who first wrote about the phenomenon.