One oddity often observed in the market is that stores charge prices ending in 99 (so we

Question:

One oddity often observed in the market is that stores charge prices ending in 99 (so we see prices of $1.99, $5.99, and so forth). Explain why this sort of pricing might be puzzling to economists. Some have suggested that this is due to stores trying to exploit a cognitive limitation of shoppers. What sort of cognitive limitation might this be? Would you expect market forces to prevent firms from exploiting consumers in this or other ways?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

Question Posted: