In this chapter we review two distinct streams of literature, the numerical cognition literature and the judgment and decision making literature, to understand the psychological mechanisms that underlie consumers' responses to prices. The judgment and decision making literature identifies three...

Driven by the low transaction costs and interactive nature of the internet, customer participation in the price-setting process has increased. Today, platforms such as eBay have popularized online auctions on a global scale, Priceline has made headlines with its name-your-own-price (NYOP)...

The author argues that subjective feelings, both mild cognitive feelings such as processing fluency and the feeling of knowing, as well as more intense emotional responses such as the pain of paying, play important roles in price psychology. Theoretical frameworks or models that do not...