Financial concept

Ultarune

This is a real quick question, what is the name of the concept where increasing the price of something, or adding a price to something that could be offered for free, leads to an increase in sales and interest due to customers have a higher perceived value of something that is sold for more money, rather than something that is cheap or free? Thanks.

ANTVGM64

I don't know but this is what they do with Bottled water right?

Savant

Maybe you are thinking of a Giffen good or a Veblen good? Those don't deal with things that are offered for free though, so it might be something else.

ronya

Veblen good, not a Giffen good. Giffen goods involve elaborate games with the income effect on demand. Veblen goods involve precisely the "higher perceived value" effect you describe.

Tav

A good of an ostentatious nature?

kedinik

What ronya said.