Perceived Gaining But Actually You Might Be Losing

See above pic. I found this at a mall yesterday. 1 for $8, but if you buy 2, it costs you $14. Sounds like a good offer? No doubt that many people went for it. But is it really a good offer, that you’re gaining? Let’s role play as an amateur economist 😄 I asked around, and I got that $12 is usually the maximum price that some women are willing to pay for a lipstick. So the lipstick worth $12. If you buy the lipstick for $8, means you get a value of $4 ($12 minus $8). For the $14 offer, each lipstick cost $7. For this one, the value you get is $5 ($12 minus $7). So far it looks like a good offer: you’d go with the one that gives you more value, so the 2 for $14 with $5 value for each of the lipsticks is the best. But then, let’s say you really need to buy a new lipstick (one typically lasts for 5–6 months), to get the 2 for $14 offer, the total cost for the first lipstick (that you need) is $8 +$6 = $14. $6 is a cost, because you don’t need the second lipstick, it’s something that you need to pay to get the first one for $7. So the value you’re getting for a lipstick under ‘2 for $14 offer’ is $12 – $14 = -$2. So now, which one is better? $5 value or -$2 value? You thought you’re gaining, but actually you’re loosing.

If you’re an economist or know economics well, please let me know if my thought was correct. Apologise for my simplistic thinking ��