How to Increase Earnings by Exploiting the Veblen Effect

The price/demand curve in a scenario characterized by the so-called Veblen effect is analytically identified as a modification, due to a variable that we call hankering, of the classical monotonic (price/demand) curve. Differentiating this function with respect to price and using a classical time variation of price, we obtain a control dynamical system. We exploit this model to analyse the possible trajectories and the equilibrium points. Based on these results, we design a strategy that maximizes the earnings of the seller.