The chapter that I read was called "the Fallacy of Supply and Demand". It started by telling the story of someone that made a ton of money from selling Japanese pearls and then trying to sell black pearls. He set an extremely high price on them and, since people didn't normally buy black pearls, went for it. It then goes into detail about "anchoring", which is described as basing what you're willing to pay for a given item based on the price of when you bought it the first time. For example, when you buy your first house, you may tend to base your future house purchases based on that first house.
I suppose anchoring applies to me in a few ways. For example, I tend to base my video game pricing based on the price of my first gaming system. If it is more, it seems expensive to me. If it is less, then it seems cheap to me.
No comments:
Post a Comment