The larger displacement motor and extra chrome build more percieved value into the bike, and MoCo takes advantage of it. I'm sure the finish on the motor costs slightly more to build, as well as some of the chrome trim such as the rear wheel - but no, the extra build costs don't justify the price premium. However, market demands do.
Still nothing to substaniate the cost, all else being equal... Just wondering cause I'm in the market for my g/f and trying to xsplain to her... She thinks the 883 is lighter and smaller, therefore the lesser cost. I showed her the customs and cosmetically there the same...
The 883's the same size, and it's actually slightly heavier due to the fact that the motor has smaller 'holes' in the cylinders, therefore more metal on the 883.