army1987 comments on It's the Same Five Dollars! - Less Wrong
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To the extent that one buys $15 stuff way more often than $125 stuff, such a decision could make sense for reasons like these, but...
Oh. My.
(I myself used to have the same failure mode. What the hell, young army1987? If anything, after spending $120 I have $110 less than after spending $10, so the marginal utility of $5 should be larger in the former case. What the hell?)