“Psychophysics of Prices”: A Reaffirmation

Abstract

from negligible when the prices are high and will tend to enhance the importance of savings which result from switching to an Independent brand. Income effects will be less pronounced when gasoline prices are low. While neither brand quality nor income effects have anything to do with Weber's Law, they can well explain the observations of Kamen and Toman. We conclude that quite apart from the conceptual inaccuracies on which we commented above Kamen and Toman have not presented appropriate evidence to support their contention.