The below presentation from the TED conference by Dan Ariely about how humans make decisions was quite entertaining. Watching all 17 minutes is recommended if you have the time. If the embedded player below doesn’t work – it is acting funky for me – the original link is here.
Hey Mark, it would be interesting to see you try an experiment with one of you iPhone projects based on his examples of better value. Give users an option they don’t want and see if it pushes them to purchase a more expensive version.
It feels a bit evil but the psychology is really interesting and it would be fun to play with. :)