[LUG] Veblen goods and Open Source software

[Henry Bremridge <henry.bremridge@xxxxxxxxx>]

http://en.wikipedia.org/wiki/Veblen_good

In economics, Veblen goods are a theoretical group of commodities for
which peoples' preference for buying them increases as a direct function
of their price, instead of decreasing according to the law of demand.

It is claimed that some types of high-status goods, such as diamonds,
Apple products or luxury cars, are Veblen goods, in that decreasing
their prices decreases people's preference for buying them because they
are no longer perceived as exclusive or high status products.[1]

Similarly, a price increase may increase that high status and perception
of exclusivity, thereby making the good even more preferable. The Veblen
effect is named after the economist Thorstein Veblen, who first pointed
out the concepts of conspicuous consumption and status-seeking.[2]


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Henry
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