Veblen goods offer signalling opportunity, and must be both immediately cognisibly to the intended signalling audience (though not necessarially others) and high in cost in order to manifest credible signalling. They are not utility or consumption goods, but information goods.
They exist where the underlying trait being signalled is difficult to communicate clearly or effectively, a circumstance especially true of social status signalling. Paradoxically, the hyperwealthy need not signal so loudly (they themselves are sufficiently well-known), but as one descends the ranks, say, below the top ten and above, say, the 90%ile (higher or lower as you prefer), that signalling becomes more necessary and costly.
This is similar to a whole set of fad-driven behaviours, ranging from speech and etiquette to clothing, diet, music, politics, management, and programming fashions, where the underlying domain is complex. Eventually the faad itself becomes dominated by poseurs whose false affectation dilutes the signal.
They exist where the underlying trait being signalled is difficult to communicate clearly or effectively, a circumstance especially true of social status signalling. Paradoxically, the hyperwealthy need not signal so loudly (they themselves are sufficiently well-known), but as one descends the ranks, say, below the top ten and above, say, the 90%ile (higher or lower as you prefer), that signalling becomes more necessary and costly.
This is similar to a whole set of fad-driven behaviours, ranging from speech and etiquette to clothing, diet, music, politics, management, and programming fashions, where the underlying domain is complex. Eventually the faad itself becomes dominated by poseurs whose false affectation dilutes the signal.
https://old.reddit.com/r/dredmorbius/comments/62uroa/clothin...
Related, diamonds & gemstones, and loss or clear signalling effect as inexpensive alternatives emerge. See earlier:
https://news.ycombinator.com/item?id=17183929