News for hackers. Stuff that matters.
Re:Alchian–Allen effect by srtjstjsj on Tuesday November 13, 2018 @12:11PM (#18442622)
That's not what the effect is about. The effect is about normal people becoming more likely to choose the expensive one because it appears to be "less 'more expensive'", because they judge ratios instead of absolute values.

A similar irrationality is when people will do an extra hour's work to save $50 off a $100 purchase, but not to save $50 off a $10000 purchase.

There are no comments on this comment yet.