<p>You might be thinking about <code>Demerit goods</code>. This type of goods have negative externality (cost) that are usually ignored by or unknown to the consumer. 
As a result, <strong>initial cost</strong> of the good is relatively low, when compared to the <strong>long term cost</strong> for the consumer.</p>

<p>Simple example of a <code>demerit goods</code> are <strong>cigarettes</strong>, since they have to fulfil two criteria:</p>

<ol>
<li>be harmful, unhealthy to the individual consumer: smoking is accepted as an unhealthy habit.</li>
<li>have negative externalities, cost to third parties: secondhand smoke.</li>
</ol>

<p>Finally, it is important to notice that classification of <code>demerit goods</code> is <strong>normative</strong> contrary to usual <strong>positive</strong> economic approach when we classify goods based on their price or income elasticity e.g. ordinal, inferior, luxury.</p>

CC BY-SA 3.0
2018-04-28T20:12:45.100Z
2018-04-28T20:12:45.100Z
An economist
<p>What are called goods, whose maintenance expenses are higher than initial price tag. There is a specific term for that, but I can't find it. </p>

CC BY-SA 3.0
2018-04-28T15:29:09.250Z
Example for this could be car, which usually requires higher maintenance expanses over time than its first price tag.
John
CC BY-SA 3.0
2018-04-28T17:19:23.810Z
Are you thinking of ‘high maintenance’?
JoaoBotelho
CC BY-SA 3.0
2018-04-28T17:41:10.157Z
@John Guess that goes for cheap used cars only ;-)
ssn
CC BY-SA 3.0
2018-04-28T19:22:33.470Z
The term could only refer to the pricing scheme, not the good. Clearly it would be possible to buy an eternal warranty with the good. Perhaps you are thinking of durable goods, because it seems more likely one does not default on the loan if the good is not yet fully consumed, and there could be no maintenance costs if the good is not durable.
Giskard
<microeconomics><definition>
Economics term for unfavorable goods
John
# Economics term for unfavorable goods

(Asked by: username_0 on 2018-04-28)

What are called goods, whose maintenance expenses are higher than initial price tag. There is a specific term for that, but I can't find it.

**Tags:** microeconomics, definition
> **Comments:**
> **username_0**: Example for this could be car, which usually requires higher maintenance expanses over time than its first price tag.  
> **username_1**: Are you thinking of ‘high maintenance’?  
> **username_2**: @John Guess that goes for cheap used cars only ;-)  
> **username_3**: The term could only refer to the pricing scheme, not the good. Clearly it would be possible to buy an eternal warranty with the good. Perhaps you are thinking of durable goods, because it seems more likely one does not default on the loan if the good is not yet fully consumed, and there could be no maintenance costs if the good is not durable.  

---

## 1 answers

### Answer by username_4 on 2018-04-28. Score: 0 | Accepted answer

You might be thinking about `Demerit goods`. This type of goods have negative externality (cost) that are usually ignored by or unknown to the consumer.
As a result, **initial cost** of the good is relatively low, when compared to the **long term cost** for the consumer.

Simple example of a `demerit goods` are **cigarettes**, since they have to fulfil two criteria:

1. be harmful, unhealthy to the individual consumer: smoking is accepted as an unhealthy habit.
2. have negative externalities, cost to third parties: secondhand smoke.

Finally, it is important to notice that classification of `demerit goods` is **normative** contrary to usual **positive** economic approach when we classify goods based on their price or income elasticity e.g. ordinal, inferior, luxury.


---

