How Apple, Netflix and Starbucks Use Psychology to Charge You More


The “right” price isn't just about cost - it's also about context. Prof. Dan Ariely wanted to figure out if how a price was presented would affect its sales. So he set up an experiment with The Economist, a well-known British financial magazine. He showed people three subscription options and asked them to choose: $59 for a digital subscription $125 for a print subscription $125 for a print + digital combination subscription That middle option looked like a mistake. Who would pay for a...