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Okay, £4, but pricey either way. I didn’t snap a photo, but this photographer went to the same place as I did. And it tasted… good.
The common-sense view would be that I was fooled into spending £4 on a grilled cheese sandwich because I was fooled into thinking I was buying quality. But behavioural economist Daniel Ariely goes one better. He thinks that a higher price tag actually makes some products better. For example, people given placebo painkillers report more relief of pain when they are told that the painkiller is more expensive. Here is that paper [pdf]. Ariely’s book is due out early next year and is strongly recommended.
Tim writes about the economics of everyday life. His 