Imagine this scenario. You're in the travel agent looking to buy a flight.
The cost of your flight in 70 quid. Just as you're about to buy it, someone tells you that the same flight is 20 quid cheaper in a TA about 15 mins walk away. Do you walk down the road and pay 20 quid less?
Second senario. You're in the TA about to buy a flight. The cost of the flight is 700 quid, but just as you're about to buy it, someone tells you the same flight is 20 quid cheaper if you walk 15 mins down the road. Do you walk down the road and pay 20 quid less?
Read any good book on behavioural economics (Thaler, Ariely etc) and you will see how the human mind works.
