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Your Money Brain
Why 19.99 feels cheaper than 20
A price tag says 19.99. That is one cent less than 20. So why does it feel like a whole different number?
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The aha, in writing
- 19.99 is just one cent less than 20, yet it reads like a whole different number.
- You read numbers left to right and the first digit grabs most of your attention, so 19.99 feels closer to 19 than to 20. Researchers call it left-digit bias.
- In more than 22 million used-car sales, prices dropped suddenly each time the mileage crossed a 10,000 mark, with smaller drops at every thousand, a pattern traced mainly to final buyers, not professionals.
Lacetera, Pope, Sydnor. Heuristic thinking and limited attention in the car market. American Economic Review, 2012.


