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This touches on an interesting human behavior; the difference between $0.00 and $0.01 is huge, much larger than $0.01 to $0.02, or even $0.01 to $0.99 - this is

by moloch 14y ago

This touches on an interesting human behavior; the difference between $0.00 and $0.01 is huge, much larger than $0.01 to $0.02, or even $0.01 to $0.99 - this is talked about (among other interesting topics) in the book "Predictably Irrational" by Dan Ariely. https://en.wikipedia.org/wiki/Predictably_irrational https://en.wikipedia.org/wiki/Predictably_irrational http://www.youtube.com/watch?v=9X68dm92HVI http://www.youtube.com/watch?v=9X68dm92HVI

vanderZwan 14y ago
"The problem isn't the price — $10 for a good turkey dinner might not be such a bad deal — but that you're being charged in the first place. It changes the relationship. For the veterans, the Red Cross went from being a little like Mom, to being the corner store." Pretty much sums up why that is.
jfoster 14y ago
I suspect the penny gap is more due to the process of paying for something. That's not completely irrational. Unless you're paying in cash, you are either cluttering up your bank statement, or having to endure an annoying series of logins, confirmations, etc. Where's the payment equivalent of a facebook "Like" button? Now that I mention it, facebook are probably well positioned to introduce such a thing.
- kalleboo 14y ago
  I still wish Flattr would take off...
- mhb 14y ago
  I suspect the penny gap is more due to the process of paying for something That is not the point Ariely makes. Charging anything at all changes the nature of the transaction from a social one to a market one and completely changes the context in which people view it. It's worth reading.
- flyinRyan 14y ago
  >Where's the payment equivalent of a facebook "Like" button? It's on Amazon.com and they have a patent for it. :(
- pc86 14y ago
  Has anyone really declined to pay for something because it would be another line item on their bank account? I get what you're saying and I agree that the process is a hindrance at the most basic level, I just don't get that specific example.

by moloch 14y ago

vanderZwan 14y ago

"The problem isn't the price — $10 for a good turkey dinner might not be such a bad deal — but that you're being charged in the first place. It changes the relationship. For the veterans, the Red Cross went from being a little like Mom, to being the corner store." Pretty much sums up why that is.

jfoster 14y ago

I suspect the penny gap is more due to the process of paying for something. That's not completely irrational. Unless you're paying in cash, you are either cluttering up your bank statement, or having to endure an annoying series of logins, confirmations, etc. Where's the payment equivalent of a facebook "Like" button? Now that I mention it, facebook are probably well positioned to introduce such a thing.

kalleboo 14y ago
I still wish Flattr would take off...
mhb 14y ago
I suspect the penny gap is more due to the process of paying for something That is not the point Ariely makes. Charging anything at all changes the nature of the transaction from a social one to a market one and completely changes the context in which people view it. It's worth reading.
flyinRyan 14y ago
>Where's the payment equivalent of a facebook "Like" button? It's on Amazon.com and they have a patent for it. :(
pc86 14y ago
Has anyone really declined to pay for something because it would be another line item on their bank account? I get what you're saying and I agree that the process is a hindrance at the most basic level, I just don't get that specific example.