Name that fallacy: If it's more expensive it must be better

Question

Is there a name for the logical fallacy that more expensive goods must be better than less expensive alternatives? Often times people make this assumption without looking at the actual design or quality.

First example: High-octane gas. Some people mistakenly think the more expensive gas is better quality. But really the higher octane's primary purpose is to allow the gas to compress more without exploding, as you need in certain high-compression engines.

Second: Audio/video cables. People (audiophiles) spend a ton of money on Monster cables and other "premium" A/V products. Sometimes there is a notable difference but so often their money is wasted on extra copper or shielding that really has no effect on signal quality.

0.. · Accepted Answer

The name of the fallacy is appeal to wealth or argumentum ad crumenam.

An appeal to wealth (argumentum ad crumenam) occurs when more money involved means something is truer or better, exploiting the impression that money flows from intelligence or work.
Source: http://rationalwiki.org/wiki/Appeal_to_money

Jeff Y · Answer

I would definitely categorize it as an example of the Hasty Generalization fallacy. https://en.wikipedia.org/wiki/Hasty_generalization

user662852 · Answer

This could be a "Giffen good" in economic theory, named after economist Robert Giffen.

"a product that people consume more of as the price rises and vice versa—violating the law of demand. "

Or a "Veblen good"  named after economist Thorstein Veblen.

" Veblen goods are types of luxury goods, such as expensive wines, jewelry, fashion-designer handbags, and luxury cars, which are in demand because of the high prices asked for them. "

200_success · Answer

If an object is considered more valuable by its owner merely because its high price prevents less-affluent people from owning it, then you could call this attitude the snob effect.

Damian Yerrick · Answer

You say "fallacy", I say "heuristic". The "common law of business balance", sometimes expressed using the aphorism "you get what you pay for", expresses a correlation between the price of a good and its quality. When a buyer has no other evidence of a product's quality, the buyer is likely to assume that the seller of the less expensive product cut corners that negatively affect its quality in some material way. So the user is applying a quality heuristic.

Answered by Damian Yerrick on August 7, 2021

kyle sexton · Answer

If the argument for the expensive good is made after the purchase, Post Purchase Rationalization is an appropriate name.

Henry Henrinson · Answer

There is such a thing as chronological snobbery:

The erroneous argument that the thinking, art, or science of an earlier time is inherently inferior to that of the present, simply by virtue of its temporal priority.

By analogy, one can call this price snobbery or, perhaps, just snobbery.

Charles Machakwa · Answer

Cost bias. I don't know if we can actually call it a fallacy.

Name that fallacy: If it's more expensive it must be better

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