What is the snob effect?
Defined by economist Harvey Leibenstein in 1950, the snob effect describes demand for a good decreasing as others consume more of it. Buyers value being different, so popularity reduces appeal.
📌 At a glance
- Defined by
- Harvey Leibenstein (1950)
- Demand response
- Falls as others buy more
- Motive
- Exclusivity, distinction
- Opposite
- Bandwagon effect
Comparison
| Effect | When others buy more | Motive | |
|---|---|---|---|
| Snob | I want it less | Being different | |
| 밴드왜건 효과 | Bandwagon | I want it more | Fitting in |
| 베블런 효과 | Veblen | (Responds to higher price) | Displaying status |
Examples
- Limited-edition sneakers and collaborations
- Brands that lose cachet once they become mainstream
Frequently asked questions
- What is the snob effect?
- A fall in demand for a good as more people consume it, driven by the desire for exclusivity.
- What is the opposite of the snob effect?
- The bandwagon effect, where demand rises because others are buying.
References
- Leibenstein, H. (1950). Bandwagon, snob, and Veblen effects in the theory of consumers’ demand. Quarterly Journal of Economics, 64(2), 183–207.