h2g2 The Hitchhiker's Guide to the Galaxy: Earth Edition

This is a general rule I made up myself and has not been exposed to rigorous scientific testing!
I try to avoid buying the cheapest option on the theory that it isn't worth it in the long run. If I am looking to spend little money I get the second cheapest option in the belief that the cost/benefit ratio will be better. When I do buy the cheapest option, I am often disappointed.

Any views on this?

I agree. I worked for years in computer retail, and found this tactic particularly clever there. The difference between the "fastest" computer and the "next fastest" is often several hundred dollars, while everything from the second fastest on down is priced relatively fairly. And those poor consumers choosing the computer brands that are $100 or more less for the same equipment are more often than not disappointed with the quality.

I've found that the second-best theory also works when buying cars, home decorating items, and even dinner at a restaurant! It seems there is a small percentage of people who will spend ridiculous amounts of money on anything simply to have "the best." It is this syndrome you are trying to avoid.