Nudging to buy more mangoes..

Alphonso mangoes in Mumbai usually sell in dozens. These usually cost beginning from 1000 Rs per dozen in the beginning of the season to Rs 150-Rs 200 per dozen in peak season when supplies increase.

I noted a store was instead selling the Alphonsos as Rs 100 per kg. For a moment I said this looks cheap. Then I just reflected and said hey this is a smart nudge.

In 1 kg when gets around 4-5 mangoes and this would mean around Rs 250 – Rs 300 per dozen. This is higher than the otherwise price of around Rs 200 per dozen one is getting in the outside market. So the store is not selling cheap but making more money by offering a deal which sounds cheaper to the mind. Only when one does the calculations does he realise the difference.

And people do not make these calculations (as a rational econ would usually say) as there was quite a rush to buy the so called cheap mangoes.

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