The incremental value of money can diminish to the point that you can sell a watch, that doesn’t tell time, for 300,000 dollars. With potentially minimum research and development costs and more than making up on production costs, clearly, such markets are extremely profitable. One would expect then, that these markets will be flooded with companies catering to such snob demand. However, intrinsic to snob demand is the requirement that market not be flooded. The system finds an equilibrium point (quasi-stable?) by setting hefty entry barriers to the snob market. I can only think of perceived quality as being a significant barrier. What would be interesting is a study on the possibility of building perceived quality, while actually doing fluff. Something tells me that it is possible.


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