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

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 them to pass on the opportunity to purchase the product altogether.

authors

Gneezy A,Gneezy U,Riener G,Nelson LD

doi

10.1073/pnas.1120893109

subject

Has Abstract

pub_date

2012-05-08 00:00:00

pages

7236-40

issue

19

eissn

0027-8424

issn

1091-6490

pii

1120893109

journal_volume

109

pub_type

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