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Spatial Competition on Psychological Pricing Strategies -- Preliminary Evidence from an Online Marketplace

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  • Magdalena Schindl
  • Felix Reichel

Abstract

This paper investigates whether spatial proximity shapes psychological-pricing choices on Austria's C2C marketplace willhaben. Two web-scraped snapshots of 826 Woom Bike listings - a standardised product sold on the platform reveal that sellers near direct competitors are more likely to adopt 9-, 90-, or 99-ending prices, who also use such pricing strategy unconditional on product characteristics or underlying spatiotemporal differences. Such strategy is associated with an average premium of approximately cet. par. 3.4 %. Information asymmetry persists: buyer trust hinges on signals such as the "Trusted Seller" badge, and missing data on the "PayLivery" feature. Lacking final transaction prices limits inference.

Suggested Citation

  • Magdalena Schindl & Felix Reichel, 2024. "Spatial Competition on Psychological Pricing Strategies -- Preliminary Evidence from an Online Marketplace," Papers 2411.07808, arXiv.org, revised Jul 2025.
    • Handle: RePEc:arx:papers:2411.07808
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    1. Ortega, Ana M. & Tabares, Felipe A., 2023. "Psychological pricing: Myth or reality? The impact of nine-ending prices on purchasing attitudes and brand revenue," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
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