The Veblen effect is also called the OREO effect, because when the inventor of this cookie, Hydrox saw the efect on sales, the price was lowered. To counter, OREO raised its price to make Hydrox seem less valuable. Hydrox has no animal fat. OREO uses lard and other animal fat, but because it costs more, People see OREO as better. Many psychology experiments confirm this bias. Jewelry pricing is the epitome of the use of this bias.
Maybe the speakers will not actually sound better, but people will think they do. After all, how can a $10,000 speaker possibly sound as good as a $15,000 one?
Maybe the speakers will not actually sound better, but people will think they do. After all, how can a $10,000 speaker possibly sound as good as a $15,000 one?