I downloaded In Rainbows yesterday, and paid 5 pounds. I forgot how much the dollar had declined, so I thought I was paying around $7 or $8, instead of $10. Radiohead is one of my favorite bands, and I would have bought the album regardless, but it made me wonder how people value buying decisions.
I’ve read several behavioral economic studies that shows sellers of an item value it more than the potential buyer, no big surprise. Just for fun though, if a dealer asked a customer to suggest a “profit” amount on a car buying decision, I wonder what the customer might say. Each person may pay the exact amount they are comfortable paying.
While I think consumers tend to undervalue provided by dealers, as well as underestimate the costs, it may be worthwhile to try once.