Unfortunately, there are studies to show that this is generally true. What with decoy prices, anchoring, the age-old susceptibility to 99s and a host of other biases, we’re at the mercy of many factors when it comes to trying to make vaguely rational pricing decisions.
For plenty more see William Poundstone’s, Priceless: The Myth of Fair Value (and how to Take Advantage of It), Scribe, 2010.
Hat tip: Avraham Byers once again.
You’re welcome to use and share this image and text for non-commercial purposes with attribution. Go wild!