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How To Quote A Price -- 0.50 Each Or 2 For 1.00?

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  • Gerstner, Eitan
  • Klein, Katherine

Abstract

Price is usually quoted as number of dollars per quantity unit. Some sellers, however, advertise price using "N for price" formats rather than a per-unit format or a "price illusion" format that states a price for a quantity less than the minimum purchase required. This paper reports exploratory experimental research to determine the likely effect of these practices on buying behavior.

Suggested Citation

  • Gerstner, Eitan & Klein, Katherine, 1990. "How To Quote A Price -- 0.50 Each Or 2 For 1.00?," Department of Economics and Business - Archive 259456, North Carolina State University, Department of Economics.
    • Handle: RePEc:ags:ncbuar:259456
    DOI: 10.22004/ag.econ.259456
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    References listed on IDEAS

    as
    1. Gerstner, Eitan & Hess, James D, 1987. "Why Do Hot Dogs Come in Packs of 10 and Buns in 8s or 12s? A Demand-Side Investigation," The Journal of Business, University of Chicago Press, vol. 60(4), pages 491-517, October.
    2. William James Adams & Janet L. Yellen, 1976. "Commodity Bundling and the Burden of Monopoly," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(3), pages 475-498.
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