Veblen Goods

[RenataHarris]

Do you think that jewellery is a 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 theory of supply and demand.'

I have seen websites that price jewellery high, and those low... but in some cases there is not much difference. I read on a blog that if jewellery is priced low, it is not 'credible'... and if you put photos of your designs you aren't selling 'what is the point'

I'd have to disagree with that last point, i dont photograph everything but like to keep a record for myself to have variety, it's nice to fit with a collection, however i do see the point in only showcasing your best work, quality over quantity. I like the learning process and gallery of colours and styles, as i havent tried to sell at fairs shops parties etc, i dont really see it as 'what will make profit'.

A lot pf people buy jewellery from primark, apparrently they sell necklaces for £2! i do think in some respects you get what you pay for, wouldnt really want to wear plastic as it doesnt mean anything to me.

Not really a criticisim of anything, just thinking....

[Glitterbug]

I'm not sure I have an answer really. My stuff sells well at craft fairs as it's reasonably priced and I think people think it's good value for money. It's a lot more expensive on-line and in galleries and it still sells well!

[Peter]

2 dimensional Art comes under the same theory, so I suppose you could argue that if the piece of jewellery constitutes Art, then it will attract the same attitudes to it's pricing. If I've spent 20 hours making a design, and I sell it for £20 because that's all I think I can get for it, surely that devalues the piece as an artistic work? It's a minefield.

[shiner]

the world renowned jewellers charge a premium because they have their name on them and the sort of person that would buy those items expect to pay premium prices and wouldn't be shopping in primark , the people who do shop in primark would not even be thinking of spending a 4 or 5 figure sum on a single item of jewellery, but to find a necklace or bracelet the right colour and style to go with an outfit they are going to be wearing for just £2 they wont worry if it's made of plastic or re-cycled wine bottles. and the middle market is wide open,most people look for style quality and something a little different without having to rob the bank

[janetdc]

Pile 'em High and Watch 'em fly. Its a case of quality versus quantity

[ladyluckjewellery]

aaaagghhh I thought I'd accidentally logged onto my old uni forum then looking at the thread title (I did an Economics degree!!).

Without looking into the whys and wherefores too much, no, jewellery is not a Veblen good in it's own right, as people have mentioned - it is sold at such low prices people don't value 'jewellery' as a product as much as they might.

Howver, some brands / types of jewellery probably are - look at some of the designer fashions and jewellery, people will pay well over the odds for these, mostly becuase of the designer name.

I'm not going to write any more, otherwise you'll get a 5000 word essay on economics

Claire