Sunday, 3 April 2011
Why do things cost the amount they do? Why can you buy a pair of socks for $1 and a basically identical pair with a fancy brand name for $20 or more? Is the 2nd set of socks really 20 times better? The answer will almost certainly be no. For the same reason that art can fetch millions of dollars but at a different point in time will be worth less than the canvas it is painted on, and that is perceived worth in relation to supply and demand factors. The fact that people are willing to spend money for an idea/to gain a particular status is the reason why mac computers are still popular even though they are overpriced in terms of features when compared to a regular pc.