Stocks are Veblen goods. Prove me wrong.
-
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?
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.
-
-
Ah got it - that makes sense. Thanks for clarifying!
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.