Anchor Pricing as a Teachable Moment From NYE

Larry and Adam Mogelonsky | January 12, 2022

By Larry and Adam Mogelonsky   All Omicron matters considered, this New Year’s Eve was still a time for going out and celebrating. As the time has passed, the lesson today is meant more as a resolution for the year ahead, with our hope that you will take the concept of ‘anchor pricing’ and figure out how to use it to optimize beverage sales for the entirety of 2022 and beyond. A form of cognitive bias, anchoring is when a person is influenced or nudged towards a particular outcome or decision based upon a previously introduced point of reference. With applications throughout behavioral economics, the ‘pricing’ comes wh...