We know prices ending in .99 are common – but why? The Undercover Economist Tim Harford explains several reasons in response to a newspaper article claiming that price tickets with round numbers are becoming more common. Harford writes of the left hand digit bias, in which shoppers pay attention to the digits on the left hand side of the price ticket, and of the idea that .99 is “shorthand” for good value.
Round numbers are special, writes professor Art Markman for United States regional public radio network WAMC. Round numbers can happen when a share market hits, say, 5,000 or your family celebrates a 50th birthday. Markman says two factors combine to create a preference for round numbers: “familiarity” and “landmarks”. Landmarks might be an anniversary on which achievements are celebrated and progress is evaluated.
Making a bet with a friend – known as a commitment contract – is touted as a way to cut procrastination and met goals. Decision Science News blogs on a new study about what happens when the commitment contract ends. It recommends renewing the commitment to stop slipping back into bad habits.
