Unfortunately, there are studies to show that this is generally true. What with decoy prices, anchoring, the age-old susceptibility to 99s and a host of other biases, we’re at the mercy of many factors when it comes to trying to make vaguely rational pricing decisions.
For plenty more see William Poundstone’s, Priceless: The Myth of Fair Value (and how to Take Advantage of It), Scribe, 2010.
Hat tip: Avraham Byers once again.
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