Norms, moods, and free lunch: Longitudinal evidence on payments from a Pay-What-You-Want restaurant
AbstractWe study the distribution and evolution of payments in a Pay-What-You-Want restaurant. Despite missing price tags and despite the option to pay nothing at all, we observe that the vast majority of guests makes strictly positive payments. Over the two years covered by our data, average payments decline slightly, converging at a positive level. At the same time, the number of daily guests increases steadily, resulting in a considerable increase in total revenues. We discuss one possible interpretation of the long-term trend in payments in terms of social norms. We further show that short-term fluctuations in average payments are partly explained by exogenous weather changes. We provide evidence that – in line with work in psychology – weather-induced changes in mood affect payments.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics).
Volume (Year): 41 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/inca/620175
Pay-What-You-Want; Moods; Weather; Social norms;
Find related papers by JEL classification:
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- D49 - Microeconomics - - Market Structure and Pricing - - - Other
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