Re: Palpatine
Yes, it's economics 101, where every concept is simplified to the point of inapplicability.
Consumers will often buy, and sometimes pay vastly extra, based on a brand name. The market isn't valuing the product highly, they are paying extra for the brand value
It's a logical decision: when a product is too complicated to evaluate, you don't have an informed marketplace. The efficient substitution is to rely on brand: the price premium is justified because the consumer is assured that the product is useful, well made, and the company will stand behind it.
When you start abusing your customers by selling them $50 stands for $1K, you start enter a risky territory. Perhaps your customers perceive the brand as more desirable because it's more of a luxury good. But most likely they will come to realize that you are just overcharging, and the value of the brand will crash. They aren't going to buy the next $2K widget that comes out, even if it's worth $2K, because the brand no longer substitutes for extensive product research.