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Dear Alexa, My friends and I went to the movies last weekend, and at the end of the night I realized I paid more for my popcorn, soda and candy, than I did for my actual movie ticket! Why are movie concessions stands so expensive? Please Explain! Kate Well Kate,... [read more]
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EconLife.com connects economics to everyday life, current events and history.

blog: the economic life

Does $2.22 sound very different from $2.33? The answer is yes. In a soon-to-be-released study by Keith Coulter of Clark University and Robin Coulter of the University of Connecticut in The Journal of Consumer Research, research indicates that shoppers expect a much better deal when the price is $2.33.
In one experiment, people were told an original price and a sale price and later asked which sale price represented the bigger discount. Ignoring the math, people instead appeared to go by the sound of the sale price. Because $2.22 sounded