A positional good is a product or service that has limited supply that consumers typically demand more of as their income rises. Positional goods often have a high price due to their limited supply and strong demand. The following are common types of positional good.
Products and services that deliberately constrain supply and set prices high. Luxury goods are widely viewed as a type of social status that demonstrate an individual's wealth. Successful luxury brands may be tempted to lower prices as this can generate significant demand and revenue. However, in the long term this can harm the brand as customer who paid more may feel dissatisfied.
Arts & CraftsArt works and crafts produced by hand by a skilled craftsperson.
Education & MembershipsEducation and memberships to elite institutions. All other things being equal, scarce degrees tend to be worth more than degrees held by a large number of people.
Scarce ResourcesResources that have limited supply such as gold.
EventsTickets to events such as sporting events.
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