How Much Is Eight Dollars?
Defector • • technology
Key Points:
- Nick Kaman, co-creator of the indie game Peak, argues that in consumer perception, prices like six, seven, or eight dollars are mentally rounded down to "five bucks," making $8 the upper limit of the five-dollar pricing tier.
- The article critiques this theory, highlighting that psychological and practical factors such as currency denominations and the annoyance of breaking bills make $8 closer to $10 than $5 in real spending experience.
- It emphasizes that smaller denominations like two dollars are perceived as nearly worthless or "free," while three dollars is effectively rounded up to five, challenging Kaman’s tier assumptions.
- The author points out that Kaman’s own promotional pricing—launching the game at $5 as a discount
