Perception of Quantity and Price Sensitivity

The way we perceive things is nonlinear, and there is an argument that instinctively we perceive quantity logarithmically. This is exemplified by the tendency of non-numerate people to put down three grains of rice when asked to make a pile halfway between one and nine grains. This perception of quantity may also be applied to price, as seen in Richard Thaler's experiment where people are more likely to go out of their way to save a small percentage on a cheaper item like a clock radio, compared to a more expensive item like a television, showing that the percentage of the saving is more important than the actual value of the saving.