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Average Buyer

 Learned about Veblen and Giffen goods reading this essay. Both have the same characteristic - as price goes up, demand goes up as well but the reasons are different

examples of Veblen goods are some forms of art, high-end designer clothes, exclusive cars and watches. The more expensive the good is, the more exclusive it is, and the more the consumers (who are attracted to it) want to purchase it.

It all centres on signalling status. Being seen to be able to purchase them can indicate someone has exquisite taste, or lots of money to spend.

I wonder if the buying is driven by the fear of being priced out by waiting too long to buy. Say I had my eye on a piece of fine jewelry for a while and thought it was bit out of budget. Next time I check it out, it has become even more expensive. If I really want this thing maybe that's the time I will pull the trigger. 

A Giffen good is a low-income, non-luxury product that defies standard economic and consumer demand theory. Demand for Giffen goods rises when the price rises and falls when the price falls

The fear of being priced out of the basic stuff like rice and potatoes when all other food is getting more expensive as well would make it wise to stock up while the person still can.

I thought about what I buy and why in light of these definitions and felt fortunate that I don't have the want or need to buy neither type of goods. 

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