Pay What You Want – But Pay Enough! Information Asymmetries and PWYW-Pricing
AbstractPay What You Want (PWYW) pricing has received considerable attention recently. Empirical studies show that if PWYW pricing is implemented, in a number of cases consumers do not behave selfishly and that some producers are able to use PWYW for increasing turnover and profits respectively. In this paper we add information asymmetries to the existing explanations regarding consumer behavior and argue that information asymmetries may account for the results found in empirical studies. Since the success of PWYW pricing depends on the distribution of information, one implication is that optimization strategies with respect to pricing should take information asymmetries into account.
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Bibliographic InfoPaper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 201304.
Length: 15 pages
Date of creation: 2013
Date of revision:
Publication status: Forthcoming in
Other versions of this item:
- Greiff, Matthias & Egbert, Henrik & Xhangolli, Kreshnik, 2013. "Pay What You Want – But Pay Enough! Information Asymmetries and PWYW Pricing," MPRA Paper 52766, University Library of Munich, Germany.
- D4 - Microeconomics - - Market Structure and Pricing
- M2 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics
- M3 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising
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