Beware of Discounts: How Being Bad at Math Costs Consumers
Matt Nunogawa stashed this in Pricing
Pricing is this insane intersection of psychology, marketing and economics.
33% more is good unless you are flying on an airplane and they confiscate 100% of it. I wonder how the article explains airplane sizes costing three times as much? Probably they can't amortize the container cost.
That pricing is based on the need for something that won't be confiscated. You pay a premium for that.