$1.49 is an awkward price, because it involves fractional dollars, and unwelcome mental calculations. The jump from $1.49 to $1.99 is easy to make, because $1.9

$1.49 is an awkward price, because it involves fractional dollars, and unwelcome mental calculations. The jump from $1.49 to $1.99 is easy to make, because $1.99 is way more attractive (how many $1.49 apps are there in the iOS app store?). From there, $1.99 to $2.99 is also easy, still only a 50% increase. Suddenly -POOF- you have a whole array of apps priced around 2-3-4 dollars, instead of a $.99 bloc. This raises the price floor of apps on the Windows market, and there are a multitude of studies describing how effective price anchoring can be.