Stocks are Veblen goods. Prove me wrong.
Can't because you're right. I think this graph proves that you are pretty succinctly.
It's ratio of the stock price of $BRK.A to $BRK.B over time.
B shares have 1/30th of the economic rights and 1/200th the voting rights of A shares.
Source: https://www.rationalwalk.com/berkshire-hathaway-ab-spread-arbitrage/ …pic.twitter.com/NMjRscHIK7
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Doesn't this graph just show that A trades higher than B - because A is more valuable with better economic and voting rights? It doesn't comment on demand so how does it illustrate a Veblen good?
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No, it shows that A trades higher than 30x B despite having only 30x the economic rights. Were there a similar ratio in voting rights it would more clearly be a Veblen good. Because there’s a voting right issue, it’s not a perfect example, but still a good one.
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