Pay-what-you-want, identity, and self-signaling in markets
Pay-what-you-want, identity, and self-signaling in markets
We investigate the role of identity and self-image consideration under "pay-what-you-want" pricing. Results from three field experiments show that often, when granted the opportunity to name the price of a product, fewer consumers choose to buy it than when the price is fixed and low. We show that this opt-out behavior is driven largely by individuals' identity and self-image concerns; individuals feel bad when they pay less than the " appropriate" price, causing themto pass on the opportunity to purchase the product altogether.
Behavioral pricing, Fairness, Social preferences
7236-7240
Gneezy, Ayelet
b2ec7103-e7f4-40ab-b26a-dca836c2d2eb
Gneezy, Uri
cc7d1c77-3409-43d5-9e17-590f1d302943
Riener, Gerhard
8e8e27a6-4931-4e70-b223-688f3fd616c1
Nelson, Leif D.
83f92f0a-eaac-4862-93e7-0acb4b3a1426
8 May 2012
Gneezy, Ayelet
b2ec7103-e7f4-40ab-b26a-dca836c2d2eb
Gneezy, Uri
cc7d1c77-3409-43d5-9e17-590f1d302943
Riener, Gerhard
8e8e27a6-4931-4e70-b223-688f3fd616c1
Nelson, Leif D.
83f92f0a-eaac-4862-93e7-0acb4b3a1426
Gneezy, Ayelet, Gneezy, Uri, Riener, Gerhard and Nelson, Leif D.
(2012)
Pay-what-you-want, identity, and self-signaling in markets.
Proceedings of the National Academy of Sciences of the United States of America, 109 (19), .
(doi:10.1073/pnas.1120893109).
Abstract
We investigate the role of identity and self-image consideration under "pay-what-you-want" pricing. Results from three field experiments show that often, when granted the opportunity to name the price of a product, fewer consumers choose to buy it than when the price is fixed and low. We show that this opt-out behavior is driven largely by individuals' identity and self-image concerns; individuals feel bad when they pay less than the " appropriate" price, causing themto pass on the opportunity to purchase the product altogether.
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Published date: 8 May 2012
Keywords:
Behavioral pricing, Fairness, Social preferences
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Local EPrints ID: 480841
URI: http://eprints.soton.ac.uk/id/eprint/480841
ISSN: 0027-8424
PURE UUID: 1af4357b-cc97-4c11-bc48-27d95ac9e0a6
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Date deposited: 10 Aug 2023 16:37
Last modified: 17 Mar 2024 04:18
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Contributors
Author:
Ayelet Gneezy
Author:
Uri Gneezy
Author:
Gerhard Riener
Author:
Leif D. Nelson
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