"Customers looked at the higher prices ($25 for the chicken instead of $21, $17 cocktails instead of $14) and ordered fewer and less-expensive items, even though they were paying exactly the same amount for them by tacking 20% onto the check at meal’s end." You know what, I worry about this sometimes. We think that we're so evolved and advanced race - that we have poetry and literature, modern medicine and rocket sci…
Isn't that the whole foundation of capitalism?
If I'm the best at making widgets I can pump them out at $4/pop while the competition needs to do $5/pop and eventually my process for widget making is the dominate one. Maybe somebody innovates and gets down to $3/pop but in the end society is able to get more widgets/$.
IMO, the real problem is all of these hidden fees. The idea of a price is that it's how much something will cost. The fact that you can juice your sales by providing a non-total price is a market distortion and should be corrected.