We examine two questions: Does precision or roundedness of prices bias magnitude judgments? If so, do these biased judgments affect buyer behavior? In a laboratory pre-test, we find that people incorrectly judge precise prices (e.g., $325,425) to be lower than round prices of similar magnitudes...

The author argues that subjective feelings, both mild cognitive feelings such as processing fluency and the feeling of knowing, as well as more intense emotional responses such as the pain of paying, play important roles in price psychology. Theoretical frameworks or models that do not...

When do internal reference prices differ from articulated price expectations? The authors propose that the internal reference price depends not only on the magnitude of the expected price, but also on the confidence associated with this expectation. Four experiments delineate the effects of...