Fantastic article...and I relish the academic viewpoint (free of beancounter clutter) on these interesting topics. Another article, albeit somewhat meatier, is linked from the first - titled ''Using Combined-Currency Prices to Lower Consumers' Perceived Cost", it delves deep into the psychological motivators of price/cost perception at the consumer level.

As loyalty program insiders, many of us experienced participants would probably be looking in the mirror somewhat as the paper discusses cost perception and our reactions to it. I find their thesis fascinating and true - how many of us when faced with a choice between $800 or 60,000 FF miles would choose to spend $400 and 30,000 FF miles instead? Our perceived cost from both currencies is reduced, even though we're actually paying about the same.

At 51 pages, it's long - but a very interesting read.