>Now if I over you something that's worth $5, or alternatively something that's worth $10 but that for a short you can purchase for just $5, which item do you choose?
I have no reason to assume that simply because you tell me something may have sold for $10 in the past, that it has any bearing on the relative utility per dollar of that item in the present.
I only look at the price I would be able to buy at, and search a few other retailers on my phone, and determine if it is an acceptable price.
People prefer discounted items because of ego. They like to feel like THEY got a deal.
I have no reason to assume that simply because you tell me something may have sold for $10 in the past, that it has any bearing on the relative utility per dollar of that item in the present.
I only look at the price I would be able to buy at, and search a few other retailers on my phone, and determine if it is an acceptable price.
People prefer discounted items because of ego. They like to feel like THEY got a deal.