A Veblen Good is a product whose demand increases as its price rises, contrary to the typical law of demand. In watchmaking, a Veblen Good refers to luxury timepieces that are sought after not despite their high price, but because of it. These watches serve as status symbols, signaling wealth, exclusivity, and refined taste. The allure of a Veblen Good in horology is rooted in the perception that higher cost equates to superior craftsmanship, heritage, and prestige. Brands such as Patek Philippe, Audemars Piguet, and Rolex exemplify this phenomenon, with certain models commanding higher demand and desirability precisely because they are expensive and difficult to obtain.

Collectors and enthusiasts often pursue these watches for their rarity, intricate complications, and the social cachet they confer. Limited editions, precious materials, and association with elite circles further enhance their appeal. The value of a Veblen Good watch is thus not solely derived from its technical merits or utility, but from its ability to convey distinction and exclusivity. As prices rise, so does the watch’s desirability among those seeking to differentiate themselves. In this way, Veblen Goods play a unique role in horology, where luxury and social signaling are as important as timekeeping itself.