Description

Overview:

Consumers often measure whether they got a good deal on a purchase by the difference between the original price and a sales price. The bigger the difference is, the better the deal feels. The original price a consumer is exposed to becomes a reference point, or an anchor. The April 2021 issue of Page One Economics® Focus on Finance explains the anchoring effect and the role it plays in the decisionmaking process when it comes to what consumers are willing to pay for a good or service.

Subject:

Economics

Level:

Middle School, High School, Community College / Lower Division, College / Upper Division

Material Type:

Lesson, Reading

Author:

Andrea Caceres-Santamaria

Provider:

Federal Reserve Bank of St. Louis

Provider Set:

Page One Economics

Date Added:

04/01/2021