Blog
The 99p Effect - Behavioural Economics and Price Points
Geoff Riley
23rd December 2010
Euro3.00 versus Euro2.99 - are you sensitive to the 0.99 price point effect? New research suggests that it works and prices are often sticky at this point because competiting retailers are loathe to move. Here is a link to a new theoretical paper. A seasonal hat tip to Tim Harford for spotting it.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.