Psychophysics of Prices

Kamen, Joseph M.; Toman, Robert J.
February 1970
Journal of Marketing Research (JMR);Feb1970, Vol. 7 Issue 1, p27
Academic Journal
This article develops and tests a "fair price" theory which is essentially contradictory to Weber's Law. As price levels rise, a constant price differential between brands becomes more important, rather than less important, in determining market share. Many testable hypotheses can be derived from this theoretical formulation.


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