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price signalling

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    Price Psychology Entry #0355

    Why a higher price can raise demand

    In some categories a rise in price increases demand, because the price is not only a cost but one of the few available statements about quality.

    Master
    The hidden part #0355

    When quality cannot be inspected, a price stops being only a cost and becomes evidence.

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    Market Signals Entry #0416

    The reason a price cut can signal weakness

    Buyers do not read a lower price only as a better deal. They also ask what the seller learned that made the old price impossible to hold.

    Adept
    The hidden part #0416

    An unexplained reduction is not a better offer. It is the seller revising a claim they previously made in public.

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