The Economy of Elegance

Abstract

The economy of elegance plays a part in the social and psychological value of a product. Obviously it is not the only factor that plays a part, but in certain conditions it can be the fundamental one. When, because of its elegance, clients through the world are willing to pay rather more for an Italian product, preferring it over others, one sees the competitive advantage that a passionate commitment to precise and skilled «making » can offer a country. The elegance of products forms a source of value because in those who possess those products it supplies not only functional utility but also some cultural value. We can, in effect, identify three main sources of value in products: i) use value, which is always mentioned in economic theories and studies of business management, and is the value created by the ability of a product to resolve a functional problem or meet a need; ii) social value, which is that created by the ability of the product to be an instrument of social relations; iii) psychological value, which arises from the ability of the product to reinforce the self-image of the end-user. Elegance plays a role in all three of these.