Pay-what-you-want, identity, and self-signaling in markets
| Authors |
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| Publication date |
2012
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| Journal |
Proceedings of the National Academy of Sciences of the United States of America
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| Volume | Issue number |
109
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| Pages (from-to) |
7236-7240
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| Organisations |
-
Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
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| 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.
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| Document type |
Article
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| Language |
English
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| Published at |
https://doi.org/10.1073/pnas.1120893109
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