Cognitive Scaffold

Preparing your thinking workspace

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MENTAL MODEL · M0708

Veblen Good

Veblen Good
BehaviorHigh supportConsumer Psychology
Included
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Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

Goods (such as luxury items) for which demand increases as price rises. Because price itself is part of their utility (conspicuousness).

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

High-price strategy. If you sell consulting, art, or high-end services, do not easily lower prices. Lowering prices would undermine their 'Veblen property', causing customers to think you are 'not worth it' and thus reduce purchases.

anchor

Anchor fast decisions

For conspicuous goods, price itself becomes part of utility (status signal), and the demand curve slopes upward to the right—higher price leads to higher demand, contrary to normal goods.

MINIMUM ACTION

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Source support: Explicit

  • link
    en.wikipedia.orghttps://en.wikipedia.org/wiki/Veblen_goodZH · Explicit
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