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Why Pay More For An Inferior Luxury Product?

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When Radosław Sikorski, Poland’s Foreign minister, went to Ukraine for talks last month, his Ukrainian counterparts reportedly laughed at him because he was wearing a Japanese quartz watch that cost only $165 (Sh13,802). A Ukrainian newspaper reported on the preferences of Ukrainian ministers, several of whom have watches that cost more than $30,000 (Sh2.5 million). Even a Communist member of Ukraine’s Parliament, the Rada, was shown wearing a watch that retails for more than $6,000 (Sh501,899). The laughter should have gone in the opposite direction. Wouldn’t you laugh (maybe in private, to...

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