Round number bias

Round number bias is the tendency for people to prefer round numbers (i.e. numbers that end in 0) or semi-round numbers (i.e. numbers that end in 5). This phenomenon exists due to the fact that people are exposed to round, or semi-round, numbers more frequently, allowing them to remember those numbers more easily. As well, this preference is subject to mere exposure effect, in which people prefer things that they are more familiar with.

Relevant Academic Papers
  • Lynn, M., Flynn, S. M., & Helion, C. (2013). Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases. Journal of Economic Psychology, 36, 96-102.