I have always had trouble citing illustrations of the rare upward sloping demand curve. I'll never have the funds it takes to indulge in prestige goods that consumers aspire because of the price tag and nothing else. But now I can name two.
I came across a pair of jeans lebelled "R&R" and sporting an obscene price tag. It was just a pair of jeans, nothing remarkable, and slightly tattered if you ask me. But it was designed by an obscure Victoria Posh Beckham. The tag added "R&R means edgy progressive design with an emphasis on modern silhouettes .... designs for sexy confident men and women who live the lifestyle and really understand the look". Clearly I don't.
College education in US is the other illustration. The NY Times reported that some institutions raised their fee without changes to their curriculum or facilities. And the schools had more applicants knocking at their doors (many more than can be explained by trend factors). Potential students assumed the higher tuition as a signal that "they must be doing something right" and did not want to be left behind. Higher education is getting edgy too!Labels: economie, news, université