Reference price theories have dominated research into how consumers evaluate prices and make price-based choices. Given the widespread acceptance of reference price theories, it is notable that so little consideration has been given to what happens when the central assumption of these theories...

Consumers are unreasonable - but they're not stupid. We all like to think we make rational choices. But thirty years' of research has shown that what we actually do is make instinctive, 'gut' choices and then reverse engineer a set of rational criteria to justify that choice in order to fool...