Re:Emirates Has Invested $500M to Build a 'Fort Knox' of Wine
by bsder on Thursday January 05, 2017 @04:11PM
(#13331432)
> It's the same with fashion. Gucci and Saks Fifth Ave don't have an increase in quality that can be attributed to the high price over say kohls.
I'm going to disagree a bit. As in many things, the first order of magnitude is a huge jump in quality. After that, the curve drops away.
In clothing the jump from say $5 to $50 is huge. The jump from $50 to $500 is generally quite noticeable, but the marginal increase in utility probably may not be as significant (sometimes it is, though). A jump from $500 to $5000 is generally subtle and is generally signalling behavior except in rare circumstances (men's suits spring to mind--the jump from $500 to about $3-4K feels quite astonishing).
Other goods have a similar curve at different points. The jump in quality from a Stratocaster-type guitar from about $100 or so to $500 is generally an astonishing jump in quality. The jump from $500 to $1000 is generally quite noticeable even to amateur guitar players. The jump from $1000 to $2000 is generally nice, but quite a bit more subtle and you probably have to be somewhat decent at guitar to notice. Above that, and we're back into signalling behavior territory with very marginal increases in actual utility.
I'm going to disagree a bit. As in many things, the first order of magnitude is a huge jump in quality. After that, the curve drops away.
In clothing the jump from say $5 to $50 is huge. The jump from $50 to $500 is generally quite noticeable, but the marginal increase in utility probably may not be as significant (sometimes it is, though). A jump from $500 to $5000 is generally subtle and is generally signalling behavior except in rare circumstances (men's suits spring to mind--the jump from $500 to about $3-4K feels quite astonishing).
Other goods have a similar curve at different points. The jump in quality from a Stratocaster-type guitar from about $100 or so to $500 is generally an astonishing jump in quality. The jump from $500 to $1000 is generally quite noticeable even to amateur guitar players. The jump from $1000 to $2000 is generally nice, but quite a bit more subtle and you probably have to be somewhat decent at guitar to notice. Above that, and we're back into signalling behavior territory with very marginal increases in actual utility.