Priceless: The Myth of Fair Value (and How to Take Advantage of It) (50 page)

Bodenhausen, Galen V.,
283

boomerang effect,
17–18

Bornstein, Brian,
18–19

Boston Consulting Group,
6

Boulud, Daniel,
159

Boulware, Lemuel,
115

bounded rationality,
52

Boyd, Robert,
121
,
122

bracketing,
160

Brawny towels,
149

Brazil, soccer fans in,
249

break-even point,
173

Brennan, Paul,
203

British Airways,
7

British Columbia, University of,
104
,
105

British products, pricing of,
185–86

Broadway shows, ticket prices for,
14–15

bubbles: real estate,
101
; stock market,
261–65

buddy system,
272–75

Budweiser beer,
152
,
154

Buffett, Warren,
169
,
261

bundling,
160
; in infomercials,
169–70

Burke, Edmund,
101

Burnham, Terence,
248–49

BusinessWeek
,
177

Cabbage Patch dolls,
105–106

Cable News Network (CNN),
228

California, University of: Berkeley,
84
,
194–95
; Los Angeles,
121
; San Diego,
60

California Institute of Technology (Caltech),
78
,
79
; Laboratory for Experimental Economics and Political Science,
263

Call, Josep,
123

Callahan, Thomas,
72

Cambridge University,
251

cameras,
145
; batteries for,
179–80

Camerer, Colin,
78
,
79
,
102–103
,
119
,
121–23
,
127
,
208–209
,
216
,
263–65

Canada,
105

Carroll, Lewis,
94

cars: charm pricing of,
190
; price negotiations for,
241–44
,
272–73
,
275
; rebate programs for,
176
; repair cost estimates for,
269–70
; websites for,
280–82

Cartier watches,
44

cash registers,
186

category scales,
35–36
,
277–79

Caterpillar Inc.,
7

cell phones: billing plans for,
172–74
; text messaging on,
181

CEOs, salaries of,
235
,
256–58

cereal boxes, changing size and shape of,
5–6

certainty effect,
60
,
61
,
99–100
,
193

Chapman, Gretchen,
18–19

Charles II, King of England,
270

charm prices,
185–92

CheapTickets,
182

Chicago, University of,
5
,
39
,
56
,
66
,
78
,
110
,
188

Chili’s restaurant chain,
160
,
163

chimpanzees,
123–24

chocolate,
135
,
137
,
193
,
286–88

Choo, Jimmy,
157

Christian virtues,
99

Claremont Graduate University,
249

Cleese, John,
134

Clemens, Roger,
259

Coach Leatherware,
156
,
158

Coates, John,
251

Coca-Cola,
6
,
149

Cocoa Krispies cereal,
5

Cognitive Reflection Test (CRT),
213–14

Cognitive Science Society,
104

Cohen, L. Jonathan,
126
,
129

Cohen, Nick,
267

Cohen, Steve,
266

coherent arbitrariness,
5
,
16

Cologne, University of,
112
,
113

Colorado, University of,
204

Columbia University,
188
; Business School,
280

compatibility principle,
75

Congress, U.S.,
257

Consumer Electronics Association,
181

Consumer Expenditure Survey,
243

Consumer Reports
,
179–80
,
272
; Auto Price Service,
242

contrast anchoring,
40

Coombs, Clyde,
53
,
82

Coors beer,
152

Cornell University,
72
,
104
,
111
,
117
,
170
,
178

Corn Pops cereal,
5

Cornsweet, Tom,
84

Cornsweet illusion,
84–85

Corporate Library,
257

Costco,
151
,
180
,
190

Cox, Donald,
16

Craigslist,
75

Crandall, Robert,
182

Creed, Greg,
186

Cromwell, Oliver,
270

Cross pens,
156

Crystal, Graef,
257

Cyrus, Miley,
166–67

Darrow, Charles,
284

Dawes, Robyn,
82

Dayan, Moshe,
81

Deal or No Deal
(television show),
130–33

decision making, behavioral theory of,
see
behavioral decision theory

Democratic Party,
116

department stores,
186
,
187
,
190

Desvousges, W. H.,
20

Deutsche Bahn,
173

Deutsche Telekom,
172

Diaconis, Persi,
81

Dial soap,
5

Diamond, Peter,
227
,
228
,
230–32

diapers, disposable,
153–54

dictator game,
118–19
,
283

Discovery Channel,
94

divorces, contentious,
234–36
,
238

Doctors Without Borders,
119

Dow Jones,
7
; Industrial Average,
262

Drexler, Mickey,
203
,
205

Duke University,
151

Dunphy, Frank,
267
,
268

Duracell batteries,
180

Dyers (spiritualist couple),
38

eBay,
186

Econometrica
,
59
,
102

economic man, fiction of,
55
; gender and,
236

Economic Policy Institute,
256

Eddie Bauer clothing company,
190

Edmund’s New Car Prices
,
242

Edwards, Ruth,
53

Edwards, Ward,
49
,
50
,
52–55
,
62
,
71
,
72
,
82
,
86
,
126–28

Einhorn, Hillel,
196

Einstein, Albert,
57
,
74
,
82
,
91

Elliman, Douglas,
219

Emerson, Ralph Waldo,
68

Emirates Airlines,
7

endowment effect,
66

Energizer batteries,
180

Enron Corporation,
234

Envirosell,
150

Erasmus University,
133

Erikson, Erik,
85

Eskildsen, Paul,
25–27

Esposito, Meade,
116

Everybody Loves Raymond
(television show),
255

executive compensation,
235–36
,
256

expected utility model,
51

extremeness aversion,
156–57

Ezarik, Justine,
172

Facebook,
195

fairness,
105–108
,
110
,
124
,
218
,
286
; appearance of,
116
; of jury awards,
20
; opportunity price increases and,
161
; in ultimatum game,
114

Family Guy, The
(television show),
246

FareCompare.com,
183

Farrelly brothers,
109

fast food: bundling of,
160
; charm prices of,
186
,
188
;
see also
McDonald’s

Fechner, Gustav,
29–32
,
39
,
224

50 Cent,
186
,
188

FIFO (first-in-first-out) inventory valuation,
227

Firesign Theatre,
175

Fisher, Irving,
223–26
,
232

Fisher, Margaret,
224

flat-rate billing plans,
174

Forbes
magazine,
189

For the Love of God
(Hirst),
266

Fortune 500 companies,
208

Foundations of Uncertainty and Risk (FUR),
60