The University of Southampton
University of Southampton Institutional Repository

Pay-what-you-want, identity, and self-signaling in markets

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
0027-8424
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
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), 7236-7240. (doi:10.1073/pnas.1120893109).

Record type: Article

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.

This record has no associated files available for download.

More information

Published date: 8 May 2012
Keywords: Behavioral pricing, Fairness, Social preferences

Identifiers

Local EPrints ID: 480841
URI: http://eprints.soton.ac.uk/id/eprint/480841
ISSN: 0027-8424
PURE UUID: 1af4357b-cc97-4c11-bc48-27d95ac9e0a6
ORCID for Gerhard Riener: ORCID iD orcid.org/0000-0003-1056-2034

Catalogue record

Date deposited: 10 Aug 2023 16:37
Last modified: 17 Mar 2024 04:18

Export record

Altmetrics

Contributors

Author: Ayelet Gneezy
Author: Uri Gneezy
Author: Gerhard Riener ORCID iD
Author: Leif D. Nelson

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×