Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases

Consumers selected round prices and/or sales-totals at greater than chance levels across two different pay-what-you-want situations and one self-pumped gasoline purchase. The differences among these situations suggest that the tendency to select round prices/sales-totals reflects a subjective preference (or liking) for round prices and not a variety of other potential explanatory processes. Discussion focuses on possible economic consequences of this revealed preference for round prices as well as directions for future research.

► Consumers often choose round pay-what-you-want prices and service gratuities. ► Consumers often leave tips that sum with the bill to a round amount. ► Consumers often pump amounts of gasoline that result in round sales totals. ► These findings suggest that consumers prefer round prices and sales totals.