The problem arises when the business overestimates willingness to pay. Ancestor post said "screw this; taxi". That damages customer goodwill. Every time. If

The problem arises when the business overestimates willingness to pay. Ancestor post said "screw this; taxi". That damages customer goodwill. Every time. If you double the prices on umbrellas every time it rains, some people will stop buying umbrellas from you entirely, even when it's sunny and they're still normal price. But if you offer a 50% discount whenever weather is fair, there will be no adverse reaction from consumers. Weird. The prices are the same either way, but the reaction is totally different. People like to know "this is the maximum I can be expected to pay" a whole lot more than "this is the lowest price I can get". When planning out a budget, it is always better to have an unexpected surplus at the end of the month than an unexpected additional expense. That's why businesses overstate the price by X% and then continually give out Y% discounts. People who can pay the higher price might not bother with requesting the discount. If they advertise a low price, then add on a bunch of hidden fees and surprise upcharges, people get pissed. This is something telecoms and airlines should consider.