Understanding Luxury Goods

A luxury good gets its value from its lack of utility and value. A typical consumer would look at what it costs and what it does and say, “that’s ridiculous.”

When a good like this (and it might be a service as well) comes to market, it sometimes transcends the value equation and enters a new realm, one of scarcity and social proof. The value, ironically, comes from its lack of value.

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