In garage sales and junk shops (euphemsistically called 'recycle' shops) it is common in Japan3 to see prices discounted from 1,000 yen to 777 yen. And that is not only because 777 is a lucky number.
The value '7' is a closer to '5' than it is to '10'. So if something is reduced in price from 10 yen to 7 yen, we instinctively associate it with almost down to half price.
What we don't immediately realise, is that 777 is closer to 1,000 than 500.4
Tests in 'Price Psychology' have shown that if a $100 item is reduced to $99.99, then sales increase. Also, if the original price was $95 and the price is inflated to $99, sales (and profits) go up. And if the $95 price is inflated to $97, sales climb even higher because people imagine there's an even bigger discount.
Where there are no price restrictions retailers can, and do, play with prices to see which price sells the most and generates the largest profit. That is their job.