Acharya Prashant responds to a question about the increasing market for luxury goods, despite the fact that most of their price is for branding and advertising rather than quality. He explains that people want something and, having money, they think the highest-priced item will bring them the highest value. In the absence of any other proper metric, people start taking price as a proxy for value. While price can sometimes be an indicator of value, it often is not. If you do not know what is really valuable, you are left with no choice but to think that price indicates value. To assess value, one must have an independent sense of their own. Without this, one relies on external indicators like price. The problem is one of valuation; we do not know the value of things in life because we do not know life itself. This leads to the assumption that the priciest item is the best. The speaker mentions the concept of "Giffen goods," a class of goods that don't sell if their prices are reduced, highlighting the absurdity of buying something only because it is expensive. The ego loves pricey things, and for the ego to accept something that is not pricey is a great price to pay. The ego is in love with money, which means it is in love with pricey goods. Acharya Prashant points out that things of the highest value often come for a low price or no price at all. To accept this would make one feel like a fool for having wasted their life accumulating money. To justify this wasted life, one must believe that low-priced things are of low value. He emphasizes that to know what is valuable, one must first know who they are. This self-knowledge allows one to understand their true needs, aspirations, and love. Once you know who you are, you will know the role of earning in life and how to spend money on things with real purpose. The speaker concludes that to know the value of a thing, you must first know yourself, a process that requires dedicating time to the question, "Who am I?"