Pride and patronage - pay-what-you-want pricing at a charitable bookstore

TY - JOUR

T1 - Pride and patronage - pay-what-you-want pricing at a charitable bookstore

AU - Gravert, Christina

PY - 2017/4/1

Y1 - 2017/4/1

N2 - ‘‘Pay-what-you-want” pricing has proven successful in some settings while failing to be profitable in others. I conduct a field experiment at a charitable bookstore to investigate what role the relationship between the customer and the seller could play in a pay-what-you-want price scheme. When subtly reminded of their participation in the store's membership program, members paid significantly more per book than without a reminder, while this reminder had no effect on non-members. Further, I find evidence that prices are sensitive to quantity chosen and evidence that is in line with a decay in prices over repeated purchases.

AB - ‘‘Pay-what-you-want” pricing has proven successful in some settings while failing to be profitable in others. I conduct a field experiment at a charitable bookstore to investigate what role the relationship between the customer and the seller could play in a pay-what-you-want price scheme. When subtly reminded of their participation in the store's membership program, members paid significantly more per book than without a reminder, while this reminder had no effect on non-members. Further, I find evidence that prices are sensitive to quantity chosen and evidence that is in line with a decay in prices over repeated purchases.

KW - Charitable contributions

KW - Field experiment

KW - Pay-what-you-want

KW - Self-image

U2 - 10.1016/j.socec.2017.01.009

DO - 10.1016/j.socec.2017.01.009

M3 - Journal article

AN - SCOPUS:85012231858

SN - 2214-8043

VL - 67

SP - 1

EP - 7

JO - Journal of Behavioral and Experimental Economics

JF - Journal of Behavioral and Experimental Economics

ER -