In this interview, I talk with Bill Poundstone, author of Priceless: The Myth of Fair Value (and How to Take Advantage of It).
Poundstone says he started researching a book about Daniel Kahneman and Amos Tversky, two of the most important researchers in the area of decision making over the last fifty years. What he found was that pricing was a good point around which to tell their story and Poundstone covers much more than that Priceless. The narrative takes us from the field of psychophysics to a $72 steak in Amarillo, Texas, all along the way teaching us how easily we can be swayed one way or another.
Supermarket consultants leave few stones unturned in determining what boosts consumers' willingness to pay. One of the more intriguing of recent findings is that shoppers open their wallets wider when moving through a store in a counterclockwise direction. On average, these shoppers spend $2 more a trip than clockwise shoppers.