When are people willing to pay a super-high price premium for something? They do, for example, for vacation properties in just the right places, like Southampton, Carmel, or Aspen; for condos in famous buildings, like 432 Park Avenue or The Millennium Tower (even if the latter might be sinking into oblivion); for signature luxury fashion pieces, like ridiculously expensive Birkin Bags by Hermes; or for cars. Do you really need a Rolls Royce Phantom for $500K, or will a Bentley Flying Spur for $250K work, or can you get by with a BMW M760 for $150K? The answer is all about identity. Buying these goods both helps you reinforce to yourself who you are, and encourages others come to the same conclusion about you.