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A study co-authored by Prof. Karen Zheng examines how fear that items will go out of stock can motivate shoppers to pay full price, increasing stores’ profits, reports CNBC reporter Susie Poppick. “It turns out people tend to believe certain products will be sold faster or sooner than they actually are,” explains Zheng.
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![A new study finds generally higher prices with occasional sales mixed in will yield more revenue than consistently low prices, at least for fashionable goods. “The high-value customers will still buy the product,” Karen Zheng says. “They want to [avoid] this feeling of regret, which would occur if they wait now and then cannot get it in the future.”](/sites/default/files/styles/frontpage__featured_news/public/images/201605/MIT-Quantifying-Regret.jpg?itok=Asq9uMvl)