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Luxury Good

A nonessential good/item which people tend only to buy (and buy more of) if they can afford basic necessity goods and expenses.

Good Types and Elasticity

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In economics, a luxury good is something which is demanded more by a consumer as their income increases. Generally, consumers do not invest in luxury goods unless they can afford necessity goods.

In games, luxury goods may include purely cosmetic items that don't confer gameplay advantages. Where the player has a choice of buying cosmetics or necessity items (e.g. medkits or repair kits), we would expect them to only purchase the former if they have enough currency to first buy the latter.

Some goods can be totally substituted for luxury goods once the player's income is sufficient. For instance, once players can afford higher-level gear (a luxury good), they may stop buying low-level gear (an inferior good).

Understanding what items can be considered luxury goods and inferior goods, and under what conditions, can help designers anticipate the shifts in players' behaviour as they progress through the game.

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