A few months ago, my trusty old Seiko died and I found myself in the market for a new watch. I ended up buying a 1,000,
10,000 on a watch that does nothing more than my $100 Seiko?
The answer, of course, is status. Thorstein Veblen got it right in his classic Theory of the Leisure Class:
Conspicuous consumption of valuable goods is a means of reputability to the gentleman of leisure.
And:
Since the consumption of these more excellent goods is an evidence of wealth, it becomes honorific; and conversely, the failure to consume in due quantity and quality becomes a mark of inferiority and demerit.