Keyword: luxury appeal

Cheap Pearls (2/16/2001)

Far from increasing consumer surplus, falling prices for luxury goods such as freshwater pearls due to overproduction reduce both consumer surplus and producer profit.

Keywords: cartel, De Beers, diamonds, fresh water pearls, luxury appeal, monopoly, paradox of plenty, prices, scarcity, Shanxiahu, snob appeal, snob effect, tragedy of the commons