Value: The Quicksand of Commodities

Premium items cost more due to their inherent value.  That is a generally accepted as fact by a wide swath of the population.  However, is this reality?  Does a shirt with a designer logo inherently possess a higher value than an identical shirt without the designer logo?  What if an individual is not aware of the existence of a designer brand?  Does ignorance alter true value of commodities?

In order to arrive at any conclusion on this topic, we must first go back to basics and think about what traditionally makes up the value proposition for a commodity.  Commodities by their definition are not necessary for life, they simply enhance the comfort of the person possessing them or using them.  In the same way that bread and water will provide a person with calories just as well as a well balanced gourmet diet, commodities can generally be substituted for with either a less refined product or through a workaround.

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