Reptilian brain · Pricing & Behavioral Economics
Transaction Utility
The pleasure of the deal itself — the gap between the price paid and the price you think is normal — separate from the value of the item; a good 'deal' on something useless still feels like a win.
An everyday example
Buying a third coat because it was 70% off.
What it can cost you
Paying for the feeling of saving; sellers who inflate the reference to inflate the feeling.
Warning signs
- I am buying the saving.
- I would not have looked at it at full price.
One thing to do
Ask whether you would buy it at this price if there were no discount; if not, the deal is the product.
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