Why we are such terrible judges of the relationship between price and quality

Past research has demonstrated that both experts and novices make notoriously poor judgments. A new study examines the mental processes behind our flawed assessments, a recurring issue in many areas of consumer research as well as in other areas of psychology and psychiatry. When it comes to the relationship between price and quality, Arul Mishra and Dhananjay Nayakankuppam (University of Iowa) argue that rather than an insensitivity to data -- poor calibration -- human judges are simply inconsistent.