How Often Do Customers Pay Different Prices for the Same Thing? The theory of supply and demand teaches us that consumers will pay the same prices for the same goods in a competitive market. In reality, however, markets are rarely … Continue reading What’s the right price?
Driving costs are hidden. Revealing them could help reduce traffic It’s been 10 years since New York City proposed congestion pricing as part of its PlaNYC sustainability initiative. That effort didn’t end the way many mobility professionals working for city … Continue reading Drivers’ cognitive reflex
How to Resolve Fights over Reclining Airplane Seats: Use Behavioral Economics Not since the Battle of the Somme has such little space been the subject of such intense conflict. We refer to the fact that Americans are now punching each … Continue reading Economics of reclining
The behavioural economics of online dating St Valentine’s Day is looming so it’s a good time to have a peak at how online dating sites use behavioural techniques to their advantage. Valued in excess of $120 million in Australia, and … Continue reading Valentine’s day online
The strange effects of thinking healthy food is costlier Consumers believe healthy food must be more expensive than cheap eats and that higher-priced food is healthier – even when there is no supporting evidence, according to new research. The results … Continue reading The influence of price food
The Overinflated Fear of Being Priced Out of Housing Rising home prices set off fears that real estate will become even more expensive, making it impossible ever to buy a home in a given city. It’s easy to understand how … Continue reading Biases in US home market
It’s Discounted, but Is It a Deal? How List Prices Lost Their Meaning As traditional retailing falters, shutting stores and shedding workers, online merchants are reaping the rewards. People like the convenience of e-commerce, and they love the feeling that … Continue reading The power of anchoring