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by throwup238 910 days ago
A Veblen good means the demand increases when the price increases. ROI doesn't factor in.

Nobody would buy 100k of adsense ads if they didn't return more than 100k in revenue. With a Veblen good, the price tag is the point.

1 comments

Haha, I’m pretty sure a lot of people buy 100K of adsense ads that doesn’t return 100K in revenue.
Good point, though most of them probably don't do it for very long unless they're money laundering (I would argue the big companies like Coca Cola spending on brand maintenance get a good ROI). The list of people who buy Veblen goods who can't ever return a profit is too long to exhaustively list: almost all jewelry, luxury watches, art, and luxury cars for example. It's only dumb luck that a few Rolexes have resale value; they're probably one scandal away from destroying all that value.