The snob effect is a phenomenon described in

microeconomics Microeconomics is a branch of mainstream economics that studies the behavior of individuals and firms in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. Microeconomics fo ...

as a situation where the demand for a certain good by individuals of a higher income level is inversely related to its demand by those of a lower income level. The "snob effect" contrasts most other microeconomic models, in that the demand curve can have a positive slope, rather than the typical negatively sloped demand curve of

normal good In economics, a normal good is a type of a Good (economics), good which experiences an increase in demand due to an increase in income, unlike inferior goods, for which the opposite is observed. When there is an increase in a person's income, for ...

s. This situation is derived by the desire to own unusual, expensive or unique

goods In economics, goods are items that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not tran ...

. For consumers who want to use exclusive products, price ''is'' quality. These goods usually have a high economic value, but low practical value. The less of an item available, the higher its snob value. Examples of such items with general snob value are rare

works of art A work of art, artwork, art piece, piece of art or art object is an artistic creation of aesthetic value. Except for "work of art", which may be used of any work regarded as art in its widest sense, including works from literature ...

designer clothing Designer clothing is expensive luxury clothing considered to be high quality and haute couture for the general public, made by, or carrying the label of, a well-known fashion designer. Brands Designer clothing is not always created by the foun ...

, and

sports cars A sports car is a car designed with an emphasis on dynamic performance, such as handling, acceleration, top speed, the thrill of driving and racing capability. Sports cars originated in Europe in the early 1900s and are currently produced by ...

. The snob effect in the consumption of luxury goods. Ergin Uzgoren, Taner Guney. Procedia - Social and Behavioral Sciences 62 ( 2012 ) 628 – 637 In all these cases, one can debate whether they meet the snob value criterion, which in itself may vary from person to person. A person may reasonably claim to purchase a designer garment because of a certain threading technique, longevity, and fabric. While this is true in some cases, the desired effect can often be achieved by purchasing a less-expensive version from a reputable brand. Often these high-end items end up as closeout items in discount stores or online retailers where they may be offered at deep discounts from original price, bringing into question the true value of the product. Ultimately, wealthy consumers can be lured by superficial factors such as rarity, celebrity representation and brand prestige.Elliott, R. (1994). Addictive consumption: function and fragmentation in postmodernity. Journal Of Consumer Policy, 17, 159-179. Collectors within a specific field can suffer from snob effect, searching for the rarest and often most expensive collectibles. Such examples are classic automobiles,

stamps Stamp or Stamps or Stamping may refer to: Official documents and related impressions * Postage stamp, used to indicate prepayment of fees for public mail * Ration stamp, indicating the right to rationed goods * Revenue stamp, used on documents to ...

and

coins A coin is a small, flat (usually depending on the country or value), round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order to ...

References

Consumer theory {{Econ-theory-stub

See also

References