I think we fear the implicit judgement that we feel is being made about us. Imagine that everyone knows that the fair price is £7. The restaurant sells it at £9 - what does the make that purchaser? A fool for overpaying - even if they can afford it, even if they actually want to support the restaurant financially, the purchaser will feel judged as a fool. As is often the case with shame, nobody else might even have noticed, let alone actually be judging, but that doesn't negate the feeling!
My theory is that a large amount of 'luxury' commerce is simply giving the customer an excuse not to feel shame, because no longer do they feel a fool, but now they are a special customer with discerning tastes.
I've fallen for that fallacy many times. Only in very few cases does luxury imply higher quality; usually the illusion is formed by the addition of almost worthless decoration (such as folded napkins in a posh restaurant, bought wholesale for literally two a penny).
My theory is that a large amount of 'luxury' commerce is simply giving the customer an excuse not to feel shame, because no longer do they feel a fool, but now they are a special customer with discerning tastes.
I've fallen for that fallacy many times. Only in very few cases does luxury imply higher quality; usually the illusion is formed by the addition of almost worthless decoration (such as folded napkins in a posh restaurant, bought wholesale for literally two a penny).