nah, I think it's as simple as that people expect certain items will not exceed a certain amount. People are fine paying between $10-20 for a meal, but crossing $20 triggers a more negative reaction. This is why you see prices like $19.999 instead of $20.
This article seems to rely on a BS miscalculation?
If you chose an earlier decade and followed a fixed group of workers around they would not barely beat inflation in a year. These workers have 1 year more experience and in earlier decades that has been very different than if you replaced a new entrants with other new entrants to have the same experience level in the samples at each time.
Restaurant food prices are set mostly on how much rent they’re paying their landlord and local labor costs. Places with higher rent and labor costs charge more for food.
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[ 0.21 ms ] story [ 20.3 ms ] thread- inflation pricing has a half life of 6 months
- wage increases raise the emotional trigger level
People feel prices through their wallets. If their wallets are fatter, a $20 burrito is not that big a deal
Your point about $X vs $X-0.01 stands as well, but is mostly orthogonal.
If you chose an earlier decade and followed a fixed group of workers around they would not barely beat inflation in a year. These workers have 1 year more experience and in earlier decades that has been very different than if you replaced a new entrants with other new entrants to have the same experience level in the samples at each time.