Veblen Goods / Veblen Effect

Biological Parallel

The handicap principle explains why costlier signals become more attractive: only high-quality individuals can afford to waste resources on extravagant displays. Male peacocks with the most elaborate tails—the "most expensive" ornaments—are preferentially chosen by females precisely because the cost is prohibitive for lower-quality males. Parasitized or malnourished males cannot produce spectacular tails, making expensive signals reliably honest. Higher cost increases attractiveness because price itself signals quality—the biological foundation of Veblen goods.