Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
Why Higher Prices Can Increase Demand
In this episode of Behavioral Economics with Fexingo, Lucas and Luna explore the Veblen effect—the counterintuitive phenomenon where raising a product's price can actually boost its desirability. They anchor the discussion with the example of luxury watches: how a watch company's decision to hike prices by 30% led to record sales, driven by status signaling and conspicuous consumption. The hosts break down the psychology behind why we sometimes want things more when they cost more, and how marketers intentionally use price as a signal of exclusivity. They contrast Veblen goods with…
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