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