MEPX
Chapter 4 of 10All chapters
  1. 1Choosing under scarcity
  2. 2How prices behave
  3. 3Inflation and real terms
  4. 4Shopping decisions
  5. 5Income and tax
  6. 6Borrowing
  7. 7Saving and compounding
  8. 8Housing costs
  9. 9Work and wages
  10. 10Making better decisions

Chapter 4 of 10

Shopping decisions

Comparing honestly.

Unit pricing

Cost per kilogram or litre is the only fair comparison across pack sizes, and larger packs are not reliably cheaper. Shelf labels usually show it in small print.

  • Cost per year of use beats sticker price for durable goods.
  • Multibuy offers only save money on things you would buy anyway.

How choices are steered

Anchor prices, decoy options, eye level placement and countdown timers all exploit predictable habits. Knowing the technique reduces its effect.