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

Author

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  • 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.

Suggested Citation

  • Christina Gravert, 2014. "Pride and Patronage - The effect of identity on pay-what-you-want prices at a charitable bookstore," Economics Working Papers 2014-04, Department of Economics and Business Economics, Aarhus University.
  • Handle: RePEc:aah:aarhec:2014-04
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    File URL: ftp://ftp.econ.au.dk/afn/wp/14/wp14_04.pdf
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    References listed on IDEAS

    as
    1. George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
    2. Regner, Tobias & Barria, Javier A., 2009. "Do consumers pay voluntarily? The case of online music," Journal of Economic Behavior & Organization, Elsevier, pages 395-406.
    3. Daniel J. Benjamin & James J. Choi & A. Joshua Strickland, 2010. "Social Identity and Preferences," American Economic Review, American Economic Association, vol. 100(4), pages 1913-1928, September.
    4. 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.
    5. 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.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Matthias Greiff & Henrik Egbert, 2016. "A Survey of the Empirical Evidence on PWYW Pricing," Bulgarian Economic Papers (www.bep.bg) bep-2016-02, St Kliment Ohridski University of Sofia, Faculty of Economics and Business Administration / Center for Economic Theories and Policies, revised Jan 2016.
    2. Schröder, Marina & Lüer, Annemarie & Sadrieh, Abdolkarim, 2015. "Pay-what-you-want or mark-off-your-own-price – A framing effect in customer-selected pricing," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 57(C), pages 200-204.
    3. Samahita, Margaret, 2015. "Pay-What-You-Want in Competition," Working Papers 2015:27, Lund University, Department of Economics.

    More about this item

    Keywords

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

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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