Details
| Original language | English |
|---|---|
| Pages (from-to) | 200-204 |
| Number of pages | 5 |
| Journal | Journal of Behavioral and Experimental Economics |
| Volume | 57 |
| Publication status | Published - 1 Aug 2015 |
Abstract
We conduct a natural field experiment to test for the effect of framing on prices paid in two customer-selected price mechanisms. In two framing conditions, we sell a soft drink and provide customers with a reference price for this drink. In the pay-what-you-want (PWYW) condition, customers are told that they can pay much as they want. In the mark-off-your-own-price (MOYOP) condition, customers are told that they can reduce the price by as much as they want. We find that prices are significantly lower and that more customers choose a price of zero in the MOYOP compared to the PWYW condition. We conjecture that the explicit request to reduce the price in MOYOP is a strong signal for customers to adjust their perception of the appropriate price downwards.
Keywords
- C93, D47, Field experiment, Framing, M31, Participative pricing, Voluntary payment mechanism
ASJC Scopus subject areas
- Psychology(all)
- Applied Psychology
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Social Sciences(all)
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In: Journal of Behavioral and Experimental Economics, Vol. 57, 01.08.2015, p. 200-204.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Pay-what-you-want or mark-off-your-own-price - A framing effect in customer-selected pricing
AU - Schröder, Marina
AU - Lüer, Annemarie
AU - Sadrieh, Abdolkarim
N1 - Publisher Copyright: © 2015 Elsevier Inc.
PY - 2015/8/1
Y1 - 2015/8/1
N2 - We conduct a natural field experiment to test for the effect of framing on prices paid in two customer-selected price mechanisms. In two framing conditions, we sell a soft drink and provide customers with a reference price for this drink. In the pay-what-you-want (PWYW) condition, customers are told that they can pay much as they want. In the mark-off-your-own-price (MOYOP) condition, customers are told that they can reduce the price by as much as they want. We find that prices are significantly lower and that more customers choose a price of zero in the MOYOP compared to the PWYW condition. We conjecture that the explicit request to reduce the price in MOYOP is a strong signal for customers to adjust their perception of the appropriate price downwards.
AB - We conduct a natural field experiment to test for the effect of framing on prices paid in two customer-selected price mechanisms. In two framing conditions, we sell a soft drink and provide customers with a reference price for this drink. In the pay-what-you-want (PWYW) condition, customers are told that they can pay much as they want. In the mark-off-your-own-price (MOYOP) condition, customers are told that they can reduce the price by as much as they want. We find that prices are significantly lower and that more customers choose a price of zero in the MOYOP compared to the PWYW condition. We conjecture that the explicit request to reduce the price in MOYOP is a strong signal for customers to adjust their perception of the appropriate price downwards.
KW - C93
KW - D47
KW - Field experiment
KW - Framing
KW - M31
KW - Participative pricing
KW - Voluntary payment mechanism
UR - http://www.scopus.com/inward/record.url?scp=84938816006&partnerID=8YFLogxK
U2 - 10.1016/j.socec.2014.10.007
DO - 10.1016/j.socec.2014.10.007
M3 - Article
AN - SCOPUS:84938816006
VL - 57
SP - 200
EP - 204
JO - Journal of Behavioral and Experimental Economics
JF - Journal of Behavioral and Experimental Economics
SN - 2214-8043
ER -