September 2010
2 posts
The behavioral economics of Apple's pricing →
This is one of the most clear applications of the decoy effect, and it happened completely under my nose.
Decoys explain why Apple often sells each gadget in a pricing series, such as the new iPod Touch’s $229, $299, and $399 price points for different storage capacities. You may gladly spend $229 to get a hot media player, thinking it’s a deal compared with the highest-priced...
