According to Economist Thorstein Veblen, some consumers measure the utility of a commodity entirely by its price, i.e., for them, the greater the price of a commodity, the greater it’s utility. Diamonds are often given an example of this case. The diamonds are considered as prestige goods in the society and for the upper strata of the society the higher the price of diamonds, the higher the prestige value of them and, therefore, the greater utility or desirability of them.
