Discounted Prestige: The Market Collapse of Veblen Brand Assassination

Why does a high-end fashion house or luxury watchmaker risk total bankruptcy the moment they decide to boost their quarterly revenue by putting their signature products on sale? In the ruthless, counter-intuitive world of luxury economics, aggressively lowering the price actually destroys the demand-a phenomenon known as Veblen Brand Assassination. Luxury items are "e;Veblen goods"e;; their enti...