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No: it is not a scam. It is a monopoly, which is different. They are a luxury good because the inly seller makes them so, without a real motive (they are not s

No: it is not a scam. It is a monopoly, which is different. They are a luxury good because the inly seller makes them so, without a real motive (they are not scarce). Louis Vuitton bags are scarce by manufacture but this is not artificial.

aunty_helen 8y ago
The motive is profit. >Louis Vuitton bags are scarce by manufacture but this is not artificial. Are you suggesting that LV bags are scarce because for the 4000$ price range they can't figure out a way to make more bags? I would make the suggestion that their scarcity is entirely atrificial to inflate prices.
- Guest9812398 8y ago
  > I would make the suggestion that their scarcity is entirely artificial to inflate prices. You're suggesting people pay $4,000 for a LV bag because LV is limiting their supply and they're difficult to find? I don't think that's the case. They're expensive because only LV can produce bags with their logo, and they're charging as much as people are willing to pay. Artificial scarcity might be the case for a special edition bag, or a Nike or Adidas shoe produced in a unique color with a limited run of 100 products. But, that's not the core of their business or the source of their overall higher prices. In short, LV bags are simply not scarce.
  - aunty_helen 8y ago
    >You're suggesting people pay $4,000 for a LV bag because LV is limiting their supply and they're difficult to find? I'm really not
    - Guest9812398 8y ago
      You said there's an artificial shortage of LV bags which is causing the inflated prices. I can't see any other way to interpret what you said.
stult 8y ago
You're right, but to elaborate it's a government granted monopoly via trademark. Yes, you can get an identically made bag for far cheaper, but it can't (legally at least) have the LV logo on it. Which is why so many luxury brands are essentially plastered in logos. The logo has no value beyond its ability to signal the wealth of its owner. So essentially rich people use an overpriced trademark for conspicuous consumption purposes. Natural diamonds are a scam because there is no way for them to be visibly distinguished from lab grown diamonds. There's no equivalent to a trademarked logo that distinguishes them from their cheaper competitors. Meaning, even if you think conspicuous consumption to display wealth is a worthwhile activity, diamonds don't even achieve that purpose anymore!

aunty_helen 8y ago

The motive is profit. >Louis Vuitton bags are scarce by manufacture but this is not artificial. Are you suggesting that LV bags are scarce because for the 4000$ price range they can't figure out a way to make more bags? I would make the suggestion that their scarcity is entirely atrificial to inflate prices.

Guest9812398 8y ago
> I would make the suggestion that their scarcity is entirely artificial to inflate prices. You're suggesting people pay $4,000 for a LV bag because LV is limiting their supply and they're difficult to find? I don't think that's the case. They're expensive because only LV can produce bags with their logo, and they're charging as much as people are willing to pay. Artificial scarcity might be the case for a special edition bag, or a Nike or Adidas shoe produced in a unique color with a limited run of 100 products. But, that's not the core of their business or the source of their overall higher prices. In short, LV bags are simply not scarce.
- aunty_helen 8y ago
  >You're suggesting people pay $4,000 for a LV bag because LV is limiting their supply and they're difficult to find? I'm really not
  - Guest9812398 8y ago
    You said there's an artificial shortage of LV bags which is causing the inflated prices. I can't see any other way to interpret what you said.

stult 8y ago

You're right, but to elaborate it's a government granted monopoly via trademark. Yes, you can get an identically made bag for far cheaper, but it can't (legally at least) have the LV logo on it. Which is why so many luxury brands are essentially plastered in logos. The logo has no value beyond its ability to signal the wealth of its owner. So essentially rich people use an overpriced trademark for conspicuous consumption purposes. Natural diamonds are a scam because there is no way for them to be visibly distinguished from lab grown diamonds. There's no equivalent to a trademarked logo that distinguishes them from their cheaper competitors. Meaning, even if you think conspicuous consumption to display wealth is a worthwhile activity, diamonds don't even achieve that purpose anymore!