High student loan debt has a lingering psychological effect and changes price sensitivity — and spending habits — those with much debt become numb to the prodigious numbers they face on the balance sheet and tend to spend even more. Here’s how regulatory changes can help them face the numbers and keep them from getting insurmountable.
What does a formerly popular NBA franchise do when it sees a sheer drop in attendance and more than half its luxury suites go empty? It employs this technique to determine how much fans value different perks … and refills the arena with a strategic and inexpensive promotion.
As Professor Ron Wilcox explains, our perception of a dollar changes within the context of a specific purchase. If you understand the Weber-Fechner Law of Pricing, more of your money might stay in your wallet.