Hill and Wang

Priceless: The Myth of Fair Value (and How to Take Advantage of It)

Why does the 99¢ Only Store have a profit margin twice that of Wal-Mart? Why do people pay for text messages, when they can send email for free? In "Priceless," William Poundstone analyzes the psychology of pricing and its roots in behavioral decision theory. He details how many companies hire "price consultants" that employ clever pricing tactics to influence our perception of value. For example, retailers may give some items an extremely high price just to make moderately cheaper items seem more affordable. Poundstone talks with Larry Mantle about the power of price as a hidden persuader.

Guest:

William Poundstone, author of "Priceless: The Myth of Fair Value (and How to Take Advantage of It)" (Hill and Wang). He is the author of more than ten nonfiction books.