Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely

Author:Dan Ariely
Language: eng
Format: mobi, epub, pdf
Tags: Decision-Making & Problem Solving, Economics, Psychology, Cognitive Psychology, Marketing, Decision-making, General, Economics - Psychological aspects, Consumer Behavior, Decision making, Psychological aspects, Education, Business & Economics
ISBN: 9780061854545
Publisher: Harper
Published: 2009-12-21T05:00:00+00:00

FROM THIS EXPERIMENT, we saw that our capsule did have a placebo effect. But suppose we priced the Veladone differently. Suppose we discounted the price of a capsule of Veladone-Rx from $2.50 to just 10 cents. Would our participants react differently?

In our next test, we changed the brochure, scratching out the original price ($2.50 per pill) and inserting a new discount price of 10 cents. Did this change our participants’ reaction? Indeed. At $2.50 almost all our participants experienced pain relief from the pill. But when the price was dropped to 10 cents, only half of them did.

Moreover, it turns out that this relationship between price and placebo effect was not the same for all participants, and the effect was particularly pronounced for people who had more experience with recent pain. In other words, for people who had experienced more pain, and thus depended more on pain medications, the relationship was more pronounced: they got even less benefit when the price was discounted. When it comes to medicines, then, we learned that you get what you pay for. Price can change the experience.

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