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The paradox that makes people buy expensive products instead of cheap ones is deeply tied to market psychology and behavioral biases, such as fear and social validation. Here are the main factors:

1. Fear of Missing Out (FOMO)
When an asset’s price rises, attention around it increases. People see positive news, other investors making profits, and end up believing that they “can’t miss out”. This emotion overrides logic, and they buy even though the asset has already appreciated, believing that the gains will continue.