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Do humans really feel that a \$99 price tag is significantly lower than a \$100 one?

Is there a name for this phenomenon and research supporting it?

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The Wikipedia page of Psychological Pricing giving this chart:

image description

Why?

Kaushik Basu used game theory in 1997 to argue that rational consumers value their own time and effort at calculation. Such consumers process the price from left to right and tend to mentally replace the last two digits of the price with an estimate of the mean "cent component" of all goods in the marketplace.

Also related on UX Stack Exchange: Is there any advantage in marketing my product for £99.99 instead of £100?

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