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I’ve come to believe that most people are not cheap but they have an aversion to feeling like they were suckered out of their money. They will pay $65k for a t
by encoderer 4y ago
I’ve come to believe that most people are not cheap but they have an aversion to feeling like they were suckered out of their money.
They will pay $65k for a truck that is known to have incredible margins for the manufacturer, and be delighted to do so, unless they find out they could have gotten it for $59k.
- ghaff 4y agoThere are all sorts of biases in pricing. One I remember from Richard Thaler years ago was that, if you were comparison shopping in physical stores (this was pre-Web), if you saw a TV in a store that was $1 more expensive than in another store you had shopped in, you'd probably just shrug and buy it. But if some $2 item were $1 more, you'd probably go back to the first store even if it cost you more than $1 to do so--because fairness/being ripped off. (And I think most people are cheap at some level in many contexts.)