Do you prefer precise or round prices?

preciseprices

The Psychological Difference Between $12.00 and $11.67

Of the lunch spots near my office, the chain Le Pain Quotidien’s menu always demands more of my attention than others. The reason that the menu at Le Pain Quotidien is unusual isn’t because they serve open-faced sandwiches or that I’m not sure what kind of cheese Fourme d’Ambert is, but rather that their prices aren’t formatted like those of other shops. Organic egg frittata costs $12.00, curried chicken salad tartine is $12.25, a large cappuccino is $5.35. In a world where most prices end with “.99”, Le Pain Quotidien’s prices make my brain hurt. The “undercover” economist Tim Harford (he has a book and writes column at the Financial Times by that title) has explained the theories for why prices in our world end in “9.” ….[READ]

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