You can see this effect in other areas too. JC Penny tried to stop deceptive pricing tactics and just offered the lowest price they could. It almost bankrupted them.

I saw it a bunch in retail too. We had a few items in the store that would never go down in price. Our price was lower than the competition’s sale price because they were loss leaders.

People would have the item in their cart, ask me if it was on sale, I’d give them the above statement, and every time they’d put it back and walk away. I’d even comparison shop for them.