Earlier quoted context omitted.
It's mostly about the emotional attachment. If you find two identical pens, and one of them was used by a famous writer, you would expect a price difference. There is no difference in the quality of those pens. They both work the same, and using the writer's pen will not make you a better writer by itself. I personally would not buy a natural diamond because of the ethical issues, but I do understand the students who…
That's a good point, the difference doesn't have to be in the item itself, BUT - Does anyone, other than geologists of course, really care about the back-story of the diamond, how it was created and how it was mined? Or are they just hanging on to an idea that some of them are "real" and some "not real" for the purposes of social signalling? If the latter, I would consider this much more changeable over time.
Yes, very much so, as is the case with all lifestyle products. People want to believe that they’re buying something special.