What's it called when two items are the same but one is priced higher and so people buy more of it thinking it is of better quality/greater value etc... When in reality they are identical.

Good marketing?

Just asked my dad and he confirmed what I was thinking.

It's "perceived value".

Studies have been done where items are marketed and advertised exactly the same but with three different prices. In all cases the higher priced item gets more sales due to a higher perceived value.

In economics that sounds like a Giffen good.

Ah! Yes, that's exactly it!

I've not heard it by that name before though. lol!

Thanks

It was something that I learnt when doing economics at university. Not needed it since. It is one of those useless bits of trivia that seems to fill by brain.

I disagree. Giffen good is consumed because consumer has no other option as no suitable substitute is available so the income effect FORCES you to buy more.

Fogmeister talks about having an option/people can choose what they buy and that has nothing to do with increasing price/income/substitution effect.

What is more shocking is that you linked a wikipedia page with good explanation and both of you completely missed the point of what giffen good is. Have you not read it or do you not understand it?
In any case, this completely undermines that tiny bit of credibility you have had left in my eyes regarding anything that has to do with money and economics.

Yes, koli is right.

I read the definition again and giffen goods are different.

But then he goes on to be a moron like normal.

I quickly read the first sentence before I had to run out of the house and come back to this.

Hmm... I have a feeling of déjà vu.

Seriously. Why the f*ck are you such a d*ck all the time? Ok, I misread the description when I didn't have much time to read it. So you go and say something like that! Seriously you are such a moron. I seriously wish you'd leave these forums. X404 would be a much better place if you did.

He doesn't have time to be nice in his fast moving world.

Just what I was thinking.

I was replying to Amnesia, not to you. I understand that you don't know and you don't pretend to know about these things, I have no problem with that. You asked a question and you were mislead.

As to Amnesia, i've had countless discussions with him and he always tries to persuade me how right he is and how much he understands it. Well he doesn't, as demonstrated here...
Yes, I am being a dick because I am sick of people talking our of their arses about things they don't know about.

I don't claim to know everything, that's why I don't argue about things that I don't have sufficient knowledge of.