The Application of the Law of Anomalous Numbers on Global Food Prices in Examining Psychological Pricing Strategies

Abstract

Abstract The goal of this paper is to present a new approach to examining psychological pricing strategies using the law of anomalous numbers on the global food prices database. Benford’s Law distribution is used in order to see whether first price digits follow Benford’s Law. On top of that, the discrete uniform distribution is used to examine whether the last digit and the last two digits of a price have the same frequency of occurrence or whether there are indications that there are symbolic meanings to price endings. The results of the analysis showed that the global food price digits distribution does not follow the chosen distributions.