Overcoming Consumer Biases in the Choice of Pricing Schemes: A Lab Experiment
Author
Abstract
Suggested Citation
Download full text from publisher
References listed on IDEAS
- Eliaz, Kfir & Spiegler, Ran, 2008. "Consumer optimism and price discrimination," Theoretical Economics, Econometric Society, vol. 3(4), December.
- Kfir Eliaz & Ran Spiegler, 2006.
"Contracting with Diversely Naive Agents,"
Review of Economic Studies, Oxford University Press, vol. 73(3), pages 689-714.
- Eliaz, Kfir & Spiegler, Ran, 2004. "Contracting with Diversely Naive Agents," CEPR Discussion Papers 4573, C.E.P.R. Discussion Papers.
- Kfir Eliaz & Ran Spiegler, 2004. "Contracting with Diversely Naïve Agents," Levine's Bibliography 122247000000000530, UCLA Department of Economics.
- Stefano DellaVigna & Ulrike Malmendier, 2004.
"Contract Design and Self-Control: Theory and Evidence,"
The Quarterly Journal of Economics, Oxford University Press, vol. 119(2), pages 353-402.
- Malmendier, Ulrike M. & Della Vigna, Stefano, 2003. "Contract Design and Self Control: Theory and Evidence," Research Papers 1801, Stanford University, Graduate School of Business.
- Agarwal, Sumit & Chomsisengphet, Souphala & Liu, Chunlin & Souleles, Nicholas S., 2005.
"Do consumers choose the right credit contracts?,"
CFS Working Paper Series
2005/32, Center for Financial Studies (CFS).
- Sumit Agarwal & Souphala Chomsisengphet & Chunlin Liu & Nicholas S. Souleles, 2006. "Do consumers choose the right credit contracts?," Working Paper Series WP-06-11, Federal Reserve Bank of Chicago.
- Xavier Gabaix & David Laibson & Guillermo Moloche & Stephen Weinberg, 2006. "Costly Information Acquisition: Experimental Analysis of a Boundedly Rational Model," American Economic Review, American Economic Association, vol. 96(4), pages 1043-1068, September.
- Chioveanu, Ioana & Zhou, Jidong, 2009.
"Price Competition and Consumer Confusion,"
MPRA Paper
17340, University Library of Munich, Germany.
- Ioana Chioveanu & Jidong Zhou, 2012. "Price Competition and Consumer Confusion," CEDI Discussion Paper Series 12-08, Centre for Economic Development and Institutions(CEDI), Brunel University.
- Susanna Esteban & Eiichi Miyagawa, 2005. "Optimal Menu of Menus with Self-Control Preferences," NajEcon Working Paper Reviews 784828000000000455, www.najecon.org.
- Michael D. Grubb, 2009.
"Selling to Overconfident Consumers,"
American Economic Review, American Economic Association, vol. 99(5), pages 1770-1807, December.
- Michael D. Grubb, 2006. "Selling to Overconfident Consumers," Discussion Papers 06-018, Stanford Institute for Economic Policy Research.
- Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
- Eugenio J. Miravete, 2003. "Choosing the Wrong Calling Plan? Ignorance and Learning," American Economic Review, American Economic Association, vol. 93(1), pages 297-310, March.
- Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, Oxford University Press, vol. 69(1), pages 99-118.
- Armstrong, Mark, 1996. "Multiproduct Nonlinear Pricing," Econometrica, Econometric Society, vol. 64(1), pages 51-75, January.
- Esteban, Susanna & Miyagawa, Eiichi & Shum, Matthew, 2007.
"Nonlinear pricing with self-control preferences,"
Journal of Economic Theory, Elsevier, vol. 135(1), pages 306-338, July.
- Matt Shum & S Esteban & E Miyagawa, 2003. "Nonlinear Pricing with Self-Control Preferences," Economics Working Paper Archive 503, The Johns Hopkins University,Department of Economics.
- Eric Maskin & John Riley, 1984. "Monopoly with Incomplete Information," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 171-196, Summer.
- Johnson, Eric J. & Camerer, Colin & Sen, Sankar & Rymon, Talia, 2002. "Detecting Failures of Backward Induction: Monitoring Information Search in Sequential Bargaining," Journal of Economic Theory, Elsevier, vol. 104(1), pages 16-47, May.
- Stefano DellaVigna & Ulrike Malmendier, 2006. "Paying Not to Go to the Gym," American Economic Review, American Economic Association, vol. 96(3), pages 694-719, June.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Fabian Herweg & Konrad Mierendorff, 2013.
"Uncertain Demand, Consumer Loss Aversion, And Flat-Rate Tariffs,"
Journal of the European Economic Association, European Economic Association, vol. 11(2), pages 399-432, April.
- Herweg, Fabian, 2010. "Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs," Bonn Econ Discussion Papers 14/2010, University of Bonn, Bonn Graduate School of Economics (BGSE).
- Fabian Herweg & Konrad Mierendorff, 2011. "Uncertain demand, consumer loss aversion, and flat-rate tariffs," ECON - Working Papers 012, Department of Economics - University of Zurich.
- Herweg, Fabian & Mierendorff, Konrad, 2013. "Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs," Munich Reprints in Economics 19420, University of Munich, Department of Economics.
- Herweg, Fabian, 2010. "Uncertain Demand, Consumer Loss Aversion, and Flat-Rate Tariffs," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 330, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Natalia Shestakova, 2010. "Pricing Scheme Choice: How Process Affects Outcome," CERGE-EI Working Papers wp411, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
- Michael D. Grubb, 2009.
"Selling to Overconfident Consumers,"
American Economic Review, American Economic Association, vol. 99(5), pages 1770-1807, December.
- Michael D. Grubb, 2006. "Selling to Overconfident Consumers," Discussion Papers 06-018, Stanford Institute for Economic Policy Research.
- Mark Armstrong, 2016.
"Nonlinear Pricing,"
Annual Review of Economics, Annual Reviews, vol. 8(1), pages 583-614, October.
- Mark Armstrong, 2015. "Nonlinear Pricing," Economics Series Working Papers 756, University of Oxford, Department of Economics.
- Armstrong, Mark, 2015. "Nonlinear Pricing," MPRA Paper 65779, University Library of Munich, Germany.
- Stephen Leider & Özge Şahin, 2014.
"Contracts, Biases, and Consumption of Access Services,"
Management Science, INFORMS, vol. 60(9), pages 2198-2222, September.
- Stephen G. Leider & Özge Sahin, 2012. "Contracts, Biases and Consumption of Access Services," CESifo Working Paper Series 3698, CESifo.
- S. Dellavigna., 2011.
"Psychology and Economics: Evidence from the Field,"
VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 4.
- Stefano DellaVigna, 2009. "Psychology and Economics: Evidence from the Field," Journal of Economic Literature, American Economic Association, vol. 47(2), pages 315-372, June.
- S. Dellavigna., 2011. "Psychology and Economics: Evidence from the Field," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
- Stefano DellaVigna, 2007. "Psychology and Economics: Evidence from the Field," NBER Working Papers 13420, National Bureau of Economic Research, Inc.
- Michael Grubb, 2015. "Behavioral Consumers in Industrial Organization: An Overview," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 47(3), pages 247-258, November.
- Esteban, Susanna & Miyagawa, Eiichi & Shum, Matthew, 2007.
"Nonlinear pricing with self-control preferences,"
Journal of Economic Theory, Elsevier, vol. 135(1), pages 306-338, July.
- Matt Shum & S Esteban & E Miyagawa, 2003. "Nonlinear Pricing with Self-Control Preferences," Economics Working Paper Archive 503, The Johns Hopkins University,Department of Economics.
- Jong-Hee Hahn & Jinwoo Kim & Sang-Hyun Kim & Jihong Lee, 2018.
"Price discrimination with loss averse consumers,"
Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(3), pages 681-728, May.
- Jong-Hee Hahn & Jinwoo Kim & Sang-Hyun Kim & Jihong Lee, 2016. "Price Discrimination with Loss Averse Consumers," Working papers 2016rwp-97, Yonsei University, Yonsei Economics Research Institute.
- Sürücü, Oktay, 2016.
"Welfare improving discrimination based on cognitive limitations,"
Research in Economics, Elsevier, vol. 70(4), pages 608-622.
- Sürücü, Oktay, 2016. "Welfare Improving Discrimination based on Cognitive Limitations," Center for Mathematical Economics Working Papers 495, Center for Mathematical Economics, Bielefeld University.
- Michael D. Grubb, 2015.
"Overconfident Consumers in the Marketplace,"
Journal of Economic Perspectives, American Economic Association, vol. 29(4), pages 9-36, Fall.
- Michael D. Grubb, 2015. "Overconfident Consumers in the Marketplace," Boston College Working Papers in Economics 877, Boston College Department of Economics.
- Fang, Hanming & Wu, Zenan, 2020.
"Life insurance and life settlement markets with overconfident policyholders,"
Journal of Economic Theory, Elsevier, vol. 189(C).
- Hanming Fang & Zenan Wu, 2017. "Life Insurance and Life Settlement Markets with Overconfident Policyholders," NBER Working Papers 23286, National Bureau of Economic Research, Inc.
- Hanming Fang & Zenan Wu, 2017. "Life Insurance and Life Settlement Markets with Overconfident Policyholders," PIER Working Paper Archive 17-005, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 20 Mar 2017.
- Huck, Steffen & Zhou, Jidong, 2011.
"Consumer behavioural biases in competition: A survey,"
MPRA Paper
31794, University Library of Munich, Germany.
- Steffen Huck & Jidong Zhou, 2011. "Consumer Behavioural Biases in Competition: A Survey," Working Papers 11-16, New York University, Leonard N. Stern School of Business, Department of Economics.
- Michael D. Grubb, 2015. "Behavioral Consumers in Industrial Organization," Boston College Working Papers in Economics 879, Boston College Department of Economics.
- Christensen, Else Gry Bro & Nafziger, Julia, 2016.
"Packaging of sin goods – Commitment or exploitation?,"
Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 62-74.
- Julia Nafziger, 2014. "Packaging of Sin Goods - Commitment or Exploitation?," Economics Working Papers 2014-05, Department of Economics and Business Economics, Aarhus University.
- Christensen, Else Gry Bro & Nafziger, Julia, 2016. "Packaging of sin goods - Commitment or exploitation?," Munich Reprints in Economics 43476, University of Munich, Department of Economics.
- Grubb, Michael D., 2012. "Dynamic nonlinear pricing: Biased expectations, inattention, and bill shock," International Journal of Industrial Organization, Elsevier, vol. 30(3), pages 287-290.
- Preyas S. Desai & Devavrat Purohit & Bo Zhou, 2018. "Allowing Consumers to Bundle Themselves: The Profitability of Family Plans," Marketing Science, INFORMS, vol. 37(6), pages 953-969, November.
- Joaquín Gómez-Miñambres, 2015.
"Temptation, horizontal differentiation and monopoly pricing,"
Theory and Decision, Springer, vol. 78(4), pages 549-573, April.
- Gómez Miñambres, Joaquín, 2011. "Temptation, horizontal differentiation and monopoly pricing," UC3M Working papers. Economics we1124, Universidad Carlos III de Madrid. Departamento de Economía.
- Malmendier, Ulrike & Szeidl, Adam, 2020. "Fishing for fools," Games and Economic Behavior, Elsevier, vol. 122(C), pages 105-129.
- Ran Spiegler, 2019.
"Behavioral Economics and the Atheoretical Style,"
American Economic Journal: Microeconomics, American Economic Association, vol. 11(2), pages 173-194, May.
- Spiegler, Ran, 2017. "Behavioral Economics and the Atheoretical Style," CEPR Discussion Papers 11786, C.E.P.R. Discussion Papers.
More about this item
Keywords
heuristics; price discrimination; experiment.;All these keywords.
JEL classification:
- D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
NEP fields
This paper has been announced in the following NEP Reports:- NEP-CBE-2010-12-11 (Cognitive & Behavioural Economics)
- NEP-EXP-2010-12-11 (Experimental Economics)
- NEP-MKT-2010-12-11 (Marketing)
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cer:papers:wp418. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lucie Vasiljevova). General contact details of provider: http://edirc.repec.org/data/eiacacz.html .
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.