Now that I am thinking back on some of my own experiences...I actually saw this sort of thing work a few times.
I used to do Antique Shows, selling stuff I had drug home too much of. Last one I did was around 1994...and, then, I gave up.
I was always super reasonable with my prices, and, I tended to know my items well. No BS, just honest good guy prices and straightforward unclutters presence, treating others how I would prefer to be treated.
Well, it did not work well at all.
People would pass up my items to pay more, for a lesser version of the same or kindred item, with another Seller twenty feet away.
Show after Show, I kept glimpsing this occurring.
One lady, who passed on a lovely Antique Box she had shown interest in, I asked her - "If you don't mind my asking, why did you not buy the little lovely old Box you had just asked me about?"
She replied "I am looking for a $20.00 present, for a friend...your Box, when I had asked the price, was $10.00."
The other thing with all this, was people would often prefer to spend more, MUCH more, for a poorer condition but otherwise identical item, which was priced more, because the same item priced 'reasonably' made them worry it 'Must have something wrong with it."
I had forgotten about this bitter, disillusioning Lesson with being a Seller at Antique Shows, but, in it's multifarious forms, over decades, in all parts of 'life', it finally turned me away from wanting anything to do with 'the public' or how they 'really' think, or how they really 'think' about anything whatever.
Occasionally conversing with different kinds of 'dealers', in moments of candor, I found they had noticed the same things, and, that they had incorporated their contempt for people's mentality, into their Business Model.
Of course, corporations, politicians, religious leaders and so on, are all long since masters of harnessing their contempt, for how people 'think', and they manage their customers accordingly, and, we wonder why the people-world is so screwed up.
Eeeeeesh! What a mess!