Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
How a 99-Cent Price Taps Your Left Brain
Episode 38 of Behavioral Economics with Fexingo digs into the left-digit effect — why a $4.99 price feels dramatically cheaper than $5.00. Lucas and Luna explore the 2011 University of Chicago study showing that reducing a price from $5.00 to $4.99 boosted sales by 24%, while an equivalent 1-cent drop from $5.00 to $4.99 had no effect. They discuss real-world applications at retailers like J.Crew and the psychology of how our brain reads prices left to right. This episode also touches on William Poundstone's book 'Priceless' and why 9-ending prices are so sticky in marketing…
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