Priceless: The Myth of Fair Value (and How to Take Advantage of It) (53 page)

Princeton University,
50
,
165
; Woodrow Wilson School,
10

Procter & Gamble Company,
6
,
153

Producers, The
(musical),
14–15

products, changing size and shape of,
5

Professional Pricing Society,
147

prospect theory,
97–103
,
132
,
147
,
170
,
172
,
220

Prudential Real Estate,
219

Pruitt, D. G.,
53

Psychological Bulletin
,
54
,
55
,
86

psychophysics,
8–9
,
26–27
,
29–36
,
39
– 40,
53
,
146
; definition of,
31
; experiments in,
26–27
,
35
,
40
; of jury awards,
276–79
; luxury trade and,
155
; magnitude scales of,
194
; of money,
42–45
origins of,
29–32
; of pain,
136
; perceptual illusion demonstrations of,
36–37
,
84–85
; power curve rule in,
32–33
; prospect theory and,
98
; of rebates,
178

Psychophysics
(Stevens),
34

Puffs tissues,
5

Puto, Christopher,
151–53
,
156

Quarterly Journal of Economics, The
,
138

Quattrone, George,
12–13

Quilted Northern toilet paper,
5

racial discrimination,
245
,
283
; in car sales,
241–44

Rand, Ayn,
108

RAND Corporation,
71

Rapp, Gregg,
162–64

rationality: bounded,
52
; cult of,
77–78

Ravikovich, Dahlia,
82

Reagan, Ronald,
56
,
256

real estate market,
196–206
,
211
; alcohol and deal-making in,
219
; anchoring in,
196–201
,
203–205
; bargaining in,
115
; bubbles in,
101
,
264
; charm prices in,
186
; framing of gains and losses in,
107
; incentives in,
176
; money illusion in,
229

rebates,
176–78

reference points,
98
,
101
,
132

reference pricing,
204–206

Remington Rand, Inc.,
224

Reserve Bank of Zimbabwe,
223

restaurants,
143–45
,
159–64
; charm pricing by,
186
,
190

Revionics, Inc.,
6
,
148

RFID tags,
150

Richelieu, Duc de,
219

Riding, Alan,
266–67

Ritov, Ilana,
209–10

Ritty, James,
186

Riviera Casino (Las Vegas),
49

Robb Report
,
156

Roberts, Gilbert,
283

Robertson, Leslie,
27

Rockefeller, J. Sterling,
49

Rockefeller, Nelson,
116

Rodriguez, Alex,
258–59

Roider, Andreas,
213

Rolex watches,
44

Rolling Stones,
202

Rolodex,
224

Romano, Ray,
255

Romans, ancient,
109–10

Rope, The
(Plautus),
109–10

Rosenblum, Paula,
177

Russell Sage Foundation,
104

Ruth, Babe,
258–59

Ryan, Nolan,
259

Saatchi, Charles,
266

Saatchi, Diane,
201

Sage, Russell,
104

salaries,
211–12
,
218
,
287
; beauty premium in,
239–40
; cuts in, fairness of,
107
; gender and,
237–38
,
240
; psychophysics and,
42–43
; of top earners,
235
,
255–59

Salary.com,
211

Sam’s Club,
151

Samuelson, Paul,
51
,
77

S&H Green Stamps,
176–77

Sanfey, Alan,
168

Saturn cars,
243

Savage, Leonard “Jimmie,”
56–59
,
78
,
125
,
146

scanners,
147–48

Schiff, Arthur,
169

Schkade, David,
276–77
,
279

Schmittberger, Rolf,
113

Schmitz, Patrick,
213

Schutte, Nicola,
17

Schwarze, Bernd,
113

Schweitzer, Maurice,
239–40

Science
,
12
,
88
,
90
,
125

Scientific American
,
127
,
147

Scion cars,
243

Scotland, Church of,
270

Scott, Robert,
4

Seaney, Rick,
183

Securities and Exchange Commission (SEC),
257

Seinfeld, Jerry,
255

Seinfeld
(television show),
3
,
255

Sensory Logic, Inc.,
156

sensory perceptions, study of,
see
psychophysics

September 11 terrorist attacks,
258

Shafir, Eldar,
227
,
228
,
230–32
,
245–47

Shakespeare, William,
127

Shampanier, Kristina,
193

Shiller, Robert,
262–63

Siegelman, Peter,
241–44

Simester, Duncan,
188–91

Simon, Herbert,
51–52

Simon, Hermann,
6
,
145–48
,
173
,
175

Simon Fraser University,
105

Simon-Kucher & Partners (SKP),
4
,
6–7
,
16
,
148
,
157–58
,
165
,
172
,
173
,
181

Simonson, Itamar,
156–58

Simpsons, The
(television show),
143

Sinai war (1956),
81

Sizzler restaurant chain,
160

Skinner, B. F.,
53

Skippy peanut butter,
4–5

Slovic, Paul,
10
,
28
,
62–67
,
72–77
,
79
,
80
,
82
,
90
,
220

Smith, Adam,
77
,
123

Smith, Vernon,
10
,
129–30

Snuggie blanket,
170

social psychology,
273

Solnick, Sara,
236–40

Sony Ericsson,
6

Sopranos, The
(television show),
255

Sorensen, Herb,
150

Sotheby’s,
267–68

South Africa,
245–46

Southern, Terry,
9–10

Southwest Airlines,
182
,
183

Spacey, Kevin,
95
,
96

Sperry, Thomas,
176

Sperry Rand,
224

Springsteen, Bruce,
167

Stack, Fritz,
269–71

Stakes and Odds experiment,
72–76

Standard & Poor’s Index,
258
,
263

Stanford University,
28
,
81
,
104
,
261
,
282
; Graduate School of Business,
205

Stanton, Angela,
252

Star Wars
movies,
189

Stein, Gertrude,
76

Stevens, S. S.,
28–29
,
32–37
,
42–44
,
99
,
112
,
136
,
137
,
155
,
277

stock market: bubbles in,
261–65
; CEO compensation and,
257
,
258
; 1929 collapse of,
224
; risk of bond market versus,
101

Stone, Geraldine,
35–36

Strack, Fritz,
90
,
269

Summers, Lawrence,
261–62

Sunstein, Cass,
76
,
276–77
,
279

Super Bowl tickets,
165–66
,
168

supermarkets,
149–51
; changing size and shape of products and packaging in,
6–7
; loyalty cards of,
149
,
176
; scales in,
8
; scanners in,
147–48

supply and demand,
156
,
224
; fairness and,
105
; top salaries and,
259

Swarthmore College,
50
,
62
,
273

Swatch watches,
44

Sweden, male aggressiveness in,
249

Swisscom,
172

Taco Bell,
186
,
188

Talisker whiskey,
219

TalkingBroadway,
14

Talwalkar, Presh,
121

TCA Fulfillment Services,
177

Tel Aviv University,
136

television stars, salaries of,
255–56

Ten Commandments,
99

testosterone,
248–52