In economics, the effect that can make a product more attractive because its higher price signals status is called the Veblen effect.
The effect is associated with conspicuous consumption: some buyers value an item partly because its price or exclusivity communicates wealth, prestige, or membership in a social group. A higher price can therefore increase appeal for those buyers, unlike the ordinary downward relationship described by the law of demand.
Thorstein Veblen examined conspicuous consumption in The Theory of the Leisure Class, published in 1899. His analysis focused on social display and status competition. Luxury fashion, high-end watches, and exclusive services are often discussed as possible settings, although a high price alone does not prove that a Veblen effect exists.
The Veblen effect should not be confused with the Giffen effect. Giffen behavior comes from an unusual income effect for an inferior staple, whereas Veblen behavior comes from preferences connected to status. A product can also have ordinary buyers for whom demand still falls when price rises.