Priceless: The Myth of Fair Value (and How to Take Advantage of It)

Priceless The Myth of Fair Value and How to Take Advantage of It Prada stores carry a few obscenely expensive items in order to boost sales for everything else which look like bargains in comparison People used to download music for free then Steve Jobs convinced

  • Title: Priceless: The Myth of Fair Value (and How to Take Advantage of It)
  • Author: William Poundstone
  • ISBN: 9780809094691
  • Page: 429
  • Format: Hardcover
  • Prada stores carry a few obscenely expensive items in order to boost sales for everything else which look like bargains in comparison People used to download music for free, then Steve Jobs convinced them to pay How By charging 99 cents That price has a hypnotic effect the profit margin of the 99 Cents Only store is twice that of Wal Mart Why do text messages costPrada stores carry a few obscenely expensive items in order to boost sales for everything else which look like bargains in comparison People used to download music for free, then Steve Jobs convinced them to pay How By charging 99 cents That price has a hypnotic effect the profit margin of the 99 Cents Only store is twice that of Wal Mart Why do text messages cost money, while e mails are free Why do jars of peanut butter keep getting smaller in order to keep the price the same The answer is simple prices are a collective hallucination In Priceless, the bestselling author William Poundstone reveals the hidden psychology of value In psychological experiments, people are unable to estimate fair prices accurately and are strongly influenced by the unconscious, irrational, and politically incorrect It hasn t taken long for marketers to apply these findings Price consultants advise retailers on how to convince consumers to pay for less, and negotiation coaches offer similar advice for businesspeople cutting deals The new psychology of price dictates the design of price tags, menus, rebates, sale ads, cell phone plans, supermarket aisles, real estate offers, wage packages, tort demands, and corporate buyouts Prices are the most pervasive hidden persuaders of all Rooted in the emerging field of behavioral decision theory, Priceless should prove indispensable to anyone who negotiates.

    One thought on “Priceless: The Myth of Fair Value (and How to Take Advantage of It)”

    1. This book's big idea: Normal people under average contemporary circumstances can consistently be hoodwinked into making decisions against their own economic interest.Define “normal people” as anyone with an average attention span and average load of worries, cares, responsibilities, and distractions.Define “average contemporary circumstances” as the usual places and times when people are compelled to spend money, e.g in crowded and noisy stores or markets, under the influence of salespeo [...]

    2. I've always been interested in the psychology of consumerism, along with related topics like marketing and purchasing behaviors. Both for how shameless it is and how readily we (myself included) seem to fall for what really amount to simple psychological slight of hand. Priceless: The Myth of Fair Value (And How to Take Advantage of It) by William Poundstone looked like it was going to scratch that itch, and while it does to some extent I'm left a little off balance by the book.If you look at Pr [...]

    3. اگه همین الان قرار باشه یک بسته نمک رو ارزش‌گذاری کنین، آیا رقم هزار تومن خوبه یا نه؟ آیا قیمت یک بسته نمک خوراکی باید بالاتر یا پایین‌تر از هزار تومن باشه؟ نمک کالاییه که به کررات خریداری نمی‌شه. یعنی هر روز یا هر هفته نمی‌خریمش. این خودش یکی از عواملیه که باعث می‌شه تعیین ق [...]

    4. Oscar Wilde once said, "The cynic knows the price of everything and the value of nothing." William Poundstone might argue that the average person doesn't know the price of anything, either. Or, rather, that prices are arbitrary constructions that aren't really based on value at all.Priceless is a foray into behavioral economics and social psychology as they apply to price and money. A lot of the research Poundstone brings forward I knew about already, and giants in the field (such as Tversky, Ka [...]

    5. Excellent summary of a ton of behavioral economics findings. Probably the best book in this vein that I've read, in part because Poundstone doesn't write like he has anything personal at stake--he's just sharing all this interesting info. In part because Poundstone's examples (almost every chapter opens with an anecdote or a portrait of an interesting figure) are so damn good.The first half of the book lays out a few crucial concepts--anchoring, price coherence, etc and the second spells these o [...]

    6. I would give this book 3.5 stars, not because of his writing style, but my personal preferences. Definitely some great stuff on economics and behavior psychology, but too dense on the descriptions of each and every study done over the years. I would prefer just to have the main takeaways of each. You can read a book summary of this one at Actionable Books: actionablebooks/summar

    7. I remembered William Poundstone from the Big Secrets era. So when a friend mentioned this book, I thought I'd check it out.It was both maddening and interesting. Basically, prices are meaningless; supply and demand is irrelevant to cost; and your cell phone bill is complicated on purpose. That's not much of an enticement to read it, but it discusses economic and neuroscience research in short, digestible bites. (With depressing results, but you probably already knew something was amiss, didn't [...]

    8. A look at the psychology of how people perceive product prices. Some interesting tidbits: for example, that cereal manufacturers raise their prices by changing the size of the box and/or the amount of empty space inside; and after a trend of increasing or decreasing size has gone on for a while, then offering a new "value size" or "mini size" that returns to the original dimensions, but with a seeming justification for the price change.But overall, it spent a lot of time on studies and ideas tha [...]

    9. We are primates. Not homo economicus, as we pretend to be.This is not a text book, more of an entertaining book spinning stories how marketers, scientists and companies exploit our weak mind each and every day. We're so easily fooled, it's mind-numbing. We all have our biases and prejudices in all areas of life, and PRICELESS helps to explain how and why we may feel in a certain way about the price of Gucci bag, a pair of Jimmy Choos, and etc. The evidence provided is primarily anecdotal and not [...]

    10. 'Priceless' is neither an extensive theory of value perception nor even a marketers' guide to 'right' pricing but it's still a great book. It starts with a review of history of modern behavioral economics and then goes into recent studies of price perceptions. That in turn leads us to notion of multidimensional, culturally and personally conditioned price perceptions. That would definitely challenge your common sense view of how money and mind collaborate.Especially recommended for D.Kahneman fa [...]

    11. Couldn't get too into this one. I wish it hadn't been written as 40-odd short chapters and more of a continuous narrative. I also wish I had a unicorn.

    12. Good book. Many profitable insights. Some areas were a bit dense, but the latter half was very applicable.

    13. on ONPrices, anchoring & other price related heuristics Buyers are mainly sensitive to relative differences, not absolute prices ==> relative valuations are stable and constant while absolute price levels can be wildly arbitrary Price is context dependent — that’s why anchoring is a thing In fact, anchoring happens subconsciously and even if warned about it, subjects seem to adjust insufficiently for it Can you then really push the envelope and come up with a crazy anchor? Old theory [...]

    14. Is it really wort 5*? Probably not.But.Priceless is just another book from a throng of multitudes of reams of heaping piles of tomes based on Kahneman & Tversky program (with significant additions from Thaler/Sunstein and Ariely et al. in this case) and subsequent research (not a negligible part of which is now in serious replication perils).So why 5*?1. Poundstone is just really good. 2. He doesn't think you are a complete idiot (not that this is some heavy stuff, but there are things that [...]

    15. O livro é um manual interessantíssimo de como funciona a psicologia dos preços. O autor explica com vários exemplos como em nossas cabeças fazemos atribuições de valores para as coisas de formas totalmente sem sentido (que fazem sentido apenas em nossas mentes). Preço é um ciência e certamente você alguma vez na vida foi influenciado por um preço âncora ou pagou por algo não só pelo produto, mas pela percepção de valor.Para mim o ponto forte do livro é a clareza da apresentaç [...]

    16. Consumers are often blinded by the price/ number, ignoring the true value of the product they paid. Moreover, discount price tags with the comparison of original price play a successful trick to push consumers to buy impulsively. I am already immune of consumer impulse for long time, i only buy what I need not what i desire. This book used many interesting terms for me to understand more of consumer behaviors with many examples which are good for those who want to get out of the tricks to learn. [...]

    17. ReveladorUn libro que demuestra toda la psicología q hay detrás de los precios, los valores, las ofertas, promociones y demás aspectos de nuestra vida diaria en relación al consumo, el capitalismo y la felicidad

    18. This book offers clear information on how to price your goods and services. The secret is in the psychology of value, which the author does a great job of presenting. Any business owner will be well served by reading this book.

    19. Very informative book on one of the basics of society, the pricing structure of the financial sector and how ad hoc it is and how easily it can be manipulated.

    20. The overarching message of this book is that monetary valuations are rather arbitrary. People don't really know how much things are worth. Even though we generally agree on relative ratings between things on such scales as enjoyability or unpleasantless, we are inconsistent in translating these into monetary amounts. In negotiations, the more you ask for, the more you get. Whichever amount is named first skews the whole future negotiation. Poundstone begins with a look at psychophysics—how we [...]

    21. Neoclassical economics says that given fixed costs to produce them, in a free market the prices of goods and services are determined by the demand for them, which is determined by their marginal utility to the consumers. This is as meaningful as saying that the demand for food is determined by its marginal nutritional content. Yes, people want to eat food and not non-food, though in a hungry year peasants can eat plant parts that are not usually considered food, but the mental mechanisms to dete [...]

    22. A great weight descends upon Pricless: The Myth of Fair Value (and How to Take Advantage of It) from the very beginning. The recurring scheme of positioning a non-fiction book as a treatise on insider tricks—a practical guide to self-help, fulfilling the promises of personal actualization—is the sole misstep in an otherwise delightful experience. Truncating the title, leaving it Priceless: The Myth of Fair Value is an apt signifier; (and How to Take Advantage of It) is one step removed from [...]

    23. I had always assumed that pricing was strictly a function of economics. Perhaps that's why I found myself shaking my head at so many of the different pricing traps that William Poundstone has described in this book. Not only has he shown that pricing is heavily based on psychology, but he has given an excellent overview of how these patterns of consumer behaviour have become general principles.In the aftermath of the depression and the second world war, the economics profession was in need of a [...]

    24. Probably worth buying to refer back to. First half is boring and dry. Rehashes Ultimatum and Dictator experiments ad nauseum. The last part of book is great though. Talks about real-life examples of pricing, and how to decipher the different pricing tricks used. Pricing is all relative, and in many cases is completely independent of any "market". - One common trick is to put something insanely expensive as the flagship product and emphasize that. Jewelry stores, high fashion stores and restauran [...]

    25. It’s one of the most useful books I have readIt so eruditely talks about the psychology about price, pricing and value. What I like about Poundstone’s writing is that he confines each theme into chapters spanning an average of 2 to 3 pages only. And like a couple of books of his I have read, it’s ideas and explanations pivot around one central theory, in this case theories on price and value researched by psychologists Daniel Kahneman & Amos Tversky, ‘psychophysics’ & quite a f [...]

    26. Nonfiction, about the intersection of psychology and economics.I was already having my doubts about this book -- it seemed awfully digressive and lacking in specifics -- but I flung it down abruptly on page 118. Here's why. The chapter is describing a game well-known to researchers in the psychology of economics, in which one player (called the "dictator") is given a sum of money and told to divide it with another player any way he/she wants. What interests the researcher is one of two things:- [...]

    27. Oh this was a fun one. Quick anecdote: I once had a relative respond when I told them about a clearance rack item with, "99 cents?! Why, I can get that cheaper at the dollar store!" And that, my friends, is why books like Priceless: the Myth of Fair Value, exist.If you have a background in the social sciences, this will feel a lot like visiting old friends. I don't think anyone can overemphasize the impact of Kahneman and Tversky, and I'm glad that Poundstone devotes a good portion of the book t [...]

    28. Priceless opened a whole new world to me, a world that was always right in front of my eyes. Behavioral study fields always have fascinating tales. Tales about our own behaviour that defy logic and tell us something weird about ourselves. But most books on the subject fail to go past the tagging of these phenomenon and mocking at our own irrationality. They spend inordinate time going after the classical theories. This is where Priceless has something different to offer.To be sure, the well-writ [...]

    29. i feel like this book enlightened my sensibilities about prices. it's funny, since part of my job responsibilities include pricing for stanford's reunion homecoming - i was even able to pick up some tidbits that could help in this arena. in general, i think this is a book for everyone, since we should all think critically about the types of purchases we make each dayis book is chock full of case studies that just blew my mind. our family's extremely logical about pricing and we mull over purchas [...]

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