The psychology of luxury pricing

Why would a firm rather burn stock than discount it? Taylor answers with Burberry's 2018 destruction of unsold goods, laying out the chain of reasoning step by step: discounting would shift stock but erode the luxury status that lets the brand charge premium prices every year. Around this she explains the tightrope of luxury pricing, where too low a price destroys cachet, using the JW Anderson x Guinness range as the hook. Excellent for Veblen goods and for challenging the assumption that demand always falls as price rises. Fits neatly into demand, rational and irrational behaviour, and brand-based competition. Accessible to all students and a good pairing with the 'bad taste' piece on ironic consumption.  Read here