Elizabeth Olson's Reviews > Priceless: The Myth of Fair Value
Priceless: The Myth of Fair Value (and How to Take Advantage of It)
by William Poundstone
by William Poundstone
The strength of this book is the author's gift for spinning engaging narrative from otherwise dry studies at the intersection of economics and psychology. Poundstone's well-supported premise is that none of us, even experts and the most studiously prepared shopper, have any real idea what anything should cost. It seems we're all unduly, and unconsciously, influenced by "anchor" numbers unrelated to the price of the item or service in question. Two examples: A ridiculously expensive item next to a merely expensive one causes the lower priced item to be perceived as a bargain, and increases its sales. Placing a photo of a woman next to an offer makes it seem a better deal than if the photo were of a man, or an object. Apparently, there's nothing we as consumers can do with this information; we're subject to the anchor effect even if we're aware of it. The only way to use it is as the seller, manipulating the consumer. Interesting, but not for me.
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