The psychology behind Netflix’s planned pricing changes

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http://www.theatlantic.com/business/archive/2014/01/the-behavioral-psychology-of-netflixs-plan-to-charge-higher-prices/283367/

Netflix CEO Reed Hastings recently said that it wants to do away from the one-price-fits-all model and introduce three pricing tiers for new members. Why three? The Atlantic looks at the behavioral psychology of pricing, and explains why the Goldilocks effect is always making us go for the middle tier, regardless of how expensive it is.

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