Prices written smaller seem more affordable

Unfortunately, there are studies to show that this is generally true, and prices written smaller are seen as more affordable than those written larger.

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.