What is a Bargain?

A while back, I heard the following definition: A Bargain is something that you don’t need at a price that you can’t resist. Although this definition might seem too anecdotal and a bit “trivial”, it is a wonderful illustration of the psychology behind bargains and it explains why sometimes we buy not-so-useful things. The definition above illustrates that there are two types of "utilities" (benefits) involved in a commercial transaction. For those of you who don’t know what utility is, it is a fancy word used by economists to describe benefit or pleasure or happiness. For example, consuming a bottle of water will bring some benefit, pleasure, happiness to the drinker. Normative economics tak

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