Round up, just below, or precise amount? Choosing the final price of a product may be just a cultural thing
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Updates every hour. Last Updated: 22-Jul-2025 18:11 ET (22-Jul-2025 22:11 GMT/UTC)
Have you ever noticed how the final digits of a price tag in a store usually follow a similar pattern? Scientists investigated this phenomenon and found that part of it might be down to the culture you live in. Looking at the levels of a society’s individualism, long-term orientation, and uncertainty avoidance, they found a link between these cultural dimensions and just-below, precise, and round prices. This suggests that pricing strategies transcend national borders and are influenced by cultural differences.
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A new study published in the Journal of Financial Economics examines the effects of the 2017 Tax Cuts and Jobs Act (TCJA) on U.S. multinational corporations. James F. Albertus and Brent Glover of the Tepper School of Business at Carnegie Mellon University, along with Oliver Levine of the University of Wisconsin-Madison, Wisconsin School of Business analyzed how the TCJA, which made almost $1.7 trillion in previously inaccessible international funds available, impacted corporate behavior.