001: Why Do We Pay the Wrong Price for Things?

Through the experience of having a handmade upcycled piece sell for 9x what it was offered to the world at (where it sat unclaimed), we explore why price is so confusing. In this episode, we explore the following concepts: Value Based Pricing, Cost Based Pricing, Corporate Trust, The Endowment Effect, Cognitive Dissonance, Price Anchoring.

Theme music by Brooks Hamilton / @brohama

References:

Admissions by Henry Marsh

Predictably Irrational by Dan Ariely

School of Life: Why We Hate Cheap Prices

Anchoring Bias: Tversky, A., & Kahneman, D. (1974). Judgment under uncertainty: Heuristics and biases. science, 185(4157), 1124-1131.

Brain Science with Ginger Campbell, Ep: Cognitive Dissonance with Carol Tavris (BS 175)

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