Consider two coupons: one offers 50 percent off a scarf that costs $20, and the other offers 5 percent off a jacket that costs $200. Using either coupon requires driving to the shopping mall across town. According to the Weber-Fechner law, which coupon will people tend to perceive as being more valuable?

Question

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In this case, even though both coupons lead to a savings of $10, the Weber-Fechner law predicts that people will tend to perceive the coupon for the scarf to be more valuable because $10 is a bigger proportion of the original price of the scarf.

Consider Two Coupons: One Offers 50 Percent Off a Scarf