March 5, 2014

VEBLEN GOODS: How A Louis Vuitton Bag Can Explain The Higher Education Bubble. “In economic terms, higher education is a positional good: It is valuable to have a college degree because other people don’t have one. It is also to a significant extent a Veblen good: Sending one’s children to college, and most especially a prestigious (meaning expensive) college, is a way of signaling social status via the conspicuous consumption of a luxury good.”