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The American Economic Association Dues Structure

  • Richard O. Beil
  • David N. Laband

Because consumers have an incentive to misrepresent their incomes and accurate information about consumers' incomes is costly for sellers to obtain, income-based pricing of goods or services seems unlikely to survive for long. Indeed, income-based pricing is extremely rare. However, the American Economic Association's dues structure in which members voluntarily pay dues according to income has survived for twenty years. The authors' survey results reveal that while some 'cheating' does occur, there is substantial compliance with the income-based dues structure. They offer several explanations for their findings.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.10.4.179
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Article provided by American Economic Association in its journal Journal of Economic Perspectives.

Volume (Year): 10 (1996)
Issue (Month): 4 (Fall)
Pages: 179-186

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Handle: RePEc:aea:jecper:v:10:y:1996:i:4:p:179-86
Note: DOI: 10.1257/jep.10.4.179
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  1. Brubaker, Earl R, 1975. "Free Ride, Free Revelation, or Golden Rule?," Journal of Law and Economics, University of Chicago Press, vol. 18(1), pages 147-61, April.
  2. Henry Hansmann, 1981. "Nonprofit Enterprise in the Performing Arts," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 341-361, Autumn.
  3. Anthony M. Yezer & Robert S. Goldfarb & Paul J. Poppen, 1996. "Does Studying Economics Discourage Cooperation? Watch What We Do, Not What We Say or How We Play," Journal of Economic Perspectives, American Economic Association, vol. 10(1), pages 177-186, Winter.
  4. Robert H. Frank & Thomas Gilovich & Dennis T. Regan, 1993. "Does Studying Economics Inhibit Cooperation?," Journal of Economic Perspectives, American Economic Association, vol. 7(2), pages 159-171, Spring.
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