Abstract
‘‘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.
| Original language | English |
|---|---|
| Journal | Journal of Behavioral and Experimental Economics |
| Volume | 67 |
| Pages (from-to) | 1-7 |
| Number of pages | 7 |
| ISSN | 2214-8043 |
| DOIs | |
| Publication status | Published - 1 Apr 2017 |
| Externally published | Yes |
Keywords
- Charitable contributions
- Field experiment
- Pay-what-you-want
- Self-image