Savvy consumers may already know how supermarkets such as Kroger
A recent New York magazine piece, based on the work of author William Poundstone, revealed the menu strategies restaurants use to drive customers toward or away from various dishes. For example, a clever menu designer won't list all prices in a long column, lest that layout enable diners to easily spot the less expensive items. Designers may highlight some expensive menu items, so that you "anchor" onto those prices, making everything else on the menu suddenly seem less expensive and more attractive. Designers may even leave out dollar signs and decimal points in a menu's prices, just to make them seem less like actual costs.
You won't only find these sorts of strategies at expensive high-end establishments. Even more popular eateries like Darden Restaurants'
Same goes for the Wall Street Cafe
Stock prices often look like they're playing the same sorts of games -- but in this case, the fault typically lies with your own brain, not some cunning menu designer. For example, stocks such as Markel
Investors can also fall prey to their own sort of anchoring. Suppose you want to own Amazon.com
A high price doesn't make a restaurant dish -- or a stock -- good or bad all on its own. In both cases, you'll need to consider the ingredients that make up the meal, and the folks running the kitchen, before you can determine its true value.
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Longtime Fool contributor Selena Maranjian owns shares of Google. Google is a Motley Fool Rule Breakers pick. Amazon.com is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Markel, which is a Motley Fool Inside Value selection. Try any of our investing newsletters free for 30 days. The Motley Fool is Fools writing for Fools.