
Priceless: The Myth of Fair Value (and How to Take Advantage of It)
by William Poundstone
Traditional economics assumes people engage in rational transactions. Not surprisingly, people make irrational decisions all the time. In Priceless, William Poundstone draws from research in psychophysics (the study of sensory perceptions) and behavioral economics to explore the subject of pricing. Concepts such as anchoring, priming, and prospect theory (adaptation, loss aversion, certainty effect) are explained.
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