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Pride and Patronage - The effect of identity on pay-what-you-want prices at a charitable bookstore

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Author Info

  • Christina Gravert

    ()
    (Department of Economics and Business, Aarhus University, Denmark)

Abstract

I conduct a field experiment at a charitable bookstore to provide evidence for the role of identity under "pay-what-you-want pricing". When subtly reminded of their participation in the store's membership program members paid significantly more per book then without a reminder, while this nudge had no effect on non-members. Making an individual aware of its close social connection to the seller can thus, in a charitable setting, increase voluntarily paid prices.

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File URL: ftp://ftp.econ.au.dk/afn/wp/14/wp14_04.pdf
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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 2014-04.

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Length: 8
Date of creation: 14 Jan 2014
Date of revision:
Handle: RePEc:aah:aarhec:2014-04

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Web page: http://www.econ.au.dk/afn/

Related research

Keywords: Field experiment; Pay-What-You-Want; Charitable contributions; Identity;

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  1. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  2. Daniel J. Benjamin & James J. Choi & A. Joshua Strickland, 2010. "Social Identity and Preferences," American Economic Review, American Economic Association, vol. 100(4), pages 1913-28, September.
  3. Riener, Gerhard & Traxler, Christian, 2012. "Norms, moods, and free lunch: Longitudinal evidence on payments from a Pay-What-You-Want restaurant," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(4), pages 476-483.
  4. Gary Charness & Luca Rigotti & Aldo Rustichini, 2007. "Individual Behavior and Group Membership," American Economic Review, American Economic Association, vol. 97(4), pages 1340-1352, September.
  5. Regner, Tobias & Barria, Javier A., 2009. "Do consumers pay voluntarily? The case of online music," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 395-406, August.
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