This article in the New York Times discussed why people will pay extremely high prices for designer jeans that aren't of any better construction than unbranded jeans. The article mentions that before the recession in 2009, there didn't seem to be a limit on how much people would pay for designer jeans. The new cap as of 2009 seemed to $200 for most designer jeans. The article makes the point that the $200 jeans looks no different of the $300 jeans of years passed. This seems to suggest the price being relative to what people are willing to pay for a product to get the perceived prestige that goes with an item. An interesting parallel the article put forward is that that purchasing a pair of jeans cost as much as an iPad. It really puts in prospective the opportunity cost of purchasing such a expensive item. Have you ever purchased an item based mostly on the prestige that goes with it? If so, did purchasing the item get the desired response from others?
http://www.nytimes.com/2009/10/29/fashion/29JEANS.html?pagewanted=all&_r=0
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