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That isn't the point; he's talking about the psychological difference we ascribe to seeing gas pegged at $4.00 a gallon versus a mere $3.99, since the first dig
by jstarfish 8y ago
That isn't the point; he's talking about the psychological difference we ascribe to seeing gas pegged at $4.00 a gallon versus a mere $3.99, since the first digit is the most significant.
Tax is always going to be the same no matter which station in town you use, so it's not a useful metric for comparison shopping.
(And actually gas stations take it a step further. The $3.99 you see on the sign isn't the actual price, it's $3.99 + 99/100 cents. If you look closely, you'll sometimes see the extra fraction of a cent in superscript.)
- chatmasta 8y ago> Tax is always going to be the same no matter which station in town you use, so it's not a useful metric for comparison shopping. I grew up on the border of Maine (sales tax) and New Hampshire (no sales tax). There, tax is frequently used as a metric for comparison shopping. In fact there’s an entire street over the bridge into NH colloquially known as “gasoline alley.”