Whereas prior research has found that consumers’ probability judgments are sensitive to the number of categories into which a set of possible outcomes is grouped, this article demonstrates that categorization can also bias predictions when the number of categories is fixed. Specifically, five...

Can pairing items from different price tiers decrease consumers’ perceptions of monetary value? Prior research suggests that adding an item with positive utility to an offering can only increase the offering’s overall value. In contrast, we show that combining expensive and inexpensive items...