Bandwagon, Snob, and Veblen Effects in the Theory of Consumers
Leibenstein, H. (1950). 'Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand.' Quarterly Journal of Economics, 64(2), 183-207. doi:10.2307/1882692. the origin of the effect and the most valuable source in this file. His definition: the Veblen effect is the phenomenon of conspicuous consumption, the extent to which demand for a consumer's good rises because it carries a higher rather than a lower price. He separates it sharply from the snob effect, which depends on the consumption of others, while the Veblen effect depends on price, and introduces the distinction between the real price, what the consumer paid, and the conspicuous
Leibenstein, H. (1950). 'Bandwagon, Snob, and Veblen Effects in the Theory of Consumers' Demand.' Quarterly Journal of Economics, 64(2), 183-207. doi:10.2307/1882692. the origin of the effect and the most valuable source in this file. His definition: the Veblen effect is the phenomenon of conspicuous consumption, the extent to which demand for a consumer's good rises because it carries a higher rather than a lower price. He separates it sharply from the snob effect, which depends on the consumption of others, while the Veblen effect depends on price, and introduces the distinction between the real price, what the consumer paid, and the conspicuous
Written from the full text read 2026-10-19.
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Demand.' Quarterly Journal of Economics, 64(2), 183-207. doi:10.2307/1882692.