Pay-What-You-Want pricing schemes: A self-image perspective
Författare
Summary, in English
Pay-What-You-Want (PWYW) pricing schemes are becoming increasingly popular. We develop a model incorporating self-image into the buyer’s utility function and introduce heterogeneity in consumption utility and image-sensitivity, generating different purchase decisions and optimal prices across individuals. When a good’s fixed price is lower than a threshold fair value, PWYW can lead to a lower utility. This may result in a lower purchase rate and higher average price, accounting for previously unexplained field experimental evidence. An increase in the threshold value decreases the buyer’s utility and may further lower the purchase rate, resulting in a further increase in purchase price.
Avdelning/ar
Publiceringsår
2015
Språk
Engelska
Sidor
17-28
Publikation/Tidskrift/Serie
Journal of Behavioral and Experimental Finance
Volym
7
Dokumenttyp
Artikel i tidskrift
Förlag
Elsevier
Ämne
- Economics
Nyckelord
- Pay-What-You-Want
- Self-image
- Fairness
- Voluntary contribution
Status
Published
ISBN/ISSN/Övrigt
- ISSN: 2214-6350