Is what you said about black pearls an example of a product "free-riding" on another gems' value? A jeweller once told me black pearls were more expensive because they were rarer than white ones. Same goes for gold pearls.
I think most of the mainstream public understand your black-pearl-value-theory well when it comes to the entertainment industry, with "unknowns" piggybacking on other well-established actors' fame. I would definitely pay more for a black pearl! White ones are so common!
Value is always subjective. For luxury items this is even more apparent.
In this case, putting an item next to (already) expensive ones tricks people into thinking that their position is a CONSEQUENCE of their great value - when actually the inverse is true.
Nevertheless, rareness of black pearls certainly play a role in keeping the value high.
Btw, you should get your hands on "Forbidden rhetorics" by Glen Beck, a german book on dirty practices that explains a lot of our irrationality. (For you it is worth getting it translated)
Its is an evil book but it captures well how we function and its a stunning dive into our own irrationalities.
It could simply be what marketers call "prestige pricing".
Back in the 90's When TAG Heuer raised the average price of their Swiss watches from $250 to $1000, sales volume went up 600%.
cinndave 1 year ago
Is what you said about black pearls an example of a product "free-riding" on another gems' value? A jeweller once told me black pearls were more expensive because they were rarer than white ones. Same goes for gold pearls.
I think most of the mainstream public understand your black-pearl-value-theory well when it comes to the entertainment industry, with "unknowns" piggybacking on other well-established actors' fame. I would definitely pay more for a black pearl! White ones are so common!
LottLottie 1 year ago
Value is always subjective. For luxury items this is even more apparent.
In this case, putting an item next to (already) expensive ones tricks people into thinking that their position is a CONSEQUENCE of their great value - when actually the inverse is true.
Nevertheless, rareness of black pearls certainly play a role in keeping the value high.
probatista 1 year ago
I need to get your new book :)
Btw, you should get your hands on "Forbidden rhetorics" by Glen Beck, a german book on dirty practices that explains a lot of our irrationality. (For you it is worth getting it translated)
Its is an evil book but it captures well how we function and its a stunning dive into our own irrationalities.
Love your videos!
michalhantl 1 year ago
Lovely stuff! Fascinating and made me chuckle.
tomlisawalton 1 year ago