Conspicuous goods are also known as Veblen goods. These are luxury goods that have a high price tag and are often associated with high social status. The demand for these goods increases as their price increases, which is the opposite of what normally happens with other goods.

Veblen goods were named after economist Thorstein Veblen who first introduced the concept of conspicuous consumption in his book, "The Theory of the Leisure Class". He argued that people use luxury items to signal their wealth and status to others.

Why do people buy them?

People buy Veblen goods for a variety of reasons, including:

1. Status: People buy Veblen goods to signal their wealth and status to others.

2. Exclusivity: Veblen goods are often exclusive and difficult to obtain, which adds to their appeal.

3. Quality: Veblen goods are often associated with high quality and craftsmanship.

4. Investment: Some people buy Veblen goods as an investment, hoping that they will appreciate in value over time.

Examples of Veblen goods

Some examples of Veblen goods include:

1. Luxury cars: Luxury cars are often associated with high social status and are seen as a symbol of success.

2. Designer clothing: Designer clothing is often associated with exclusivity and high fashion.

3. Fine art: Fine art is often seen as a symbol of sophistication and culture.

4. Fine jewelry: Fine jewelry is often associated with luxury and high social status.

Conclusion

Veblen goods are luxury items that are associated with high social status and are often used to signal wealth and success. Their demand increases as their price increases, which is the opposite of what happens with other goods. Examples of Veblen goods include luxury cars, designer clothing, fine art, and fine jewelry.