Pay What You Want – But Pay Enough! Information Asymmetries and PWYW-Pricing
Pay 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.
|Date of creation:||2013|
|Date of revision:|
|Publication status:||Forthcoming in|
|Contact details of provider:|| Postal: Universitätsstraße 25, 35037 Marburg|
Web page: http://www.uni-marburg.de/fb02/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tobias Regner, 2010. "Why Consumers Pay Voluntarily: Evidence from Online Music," Jena Economic Research Papers 2010-081, Friedrich-Schiller-University Jena, revised 10 Dec 2014.
- Capra, C. Monica & Lanier, Kelli F. & Meer, Shireen, 2010.
"The effects of induced mood on bidding in random nth-price auctions,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 75(2), pages 223-234, August.
- C. Monica Capra & Shireen Meer & Kelli Lanier, 2006. "The Effects of Induced Mood on Bidding in Random N-th Price Auctions," Emory Economics 0607, Department of Economics, Emory University (Atlanta).
- Klaus Schmidt & Martin Spann & Robert Zeithammer, 2014.
"Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets,"
CESifo Working Paper Series
5069, CESifo Group Munich.
- Schmidt, Klaus M. & Spann, Martin & Zeithammer, Robert, 2012. "Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets," Discussion Papers in Economics 14308, University of Munich, Department of Economics.
- Schmidt, Klaus M. & Spann, Martin & Zeithammer, Robert, 2012. "Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 393, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Nick Feltovich, 2011. "The Effect of Subtracting a Constant from all Payoffs in a Hawk-Dove Game: Experimental Evidence of Loss Aversion in Strategic Behavior," Southern Economic Journal, Southern Economic Association, vol. 77(4), pages 814-826, April.
- Bolton, Lisa E & Warlop, Luk & Alba, Joseph W, 2003. " Consumer Perceptions of Price (Un)Fairness," Journal of Consumer Research, Oxford University Press, vol. 29(4), pages 474-91, March.
- 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.
- Tobias Regner & Javier A. Barria, 2007.
"Do Consumers Pay Voluntarily? The Case of Online Music,"
Jena Economic Research Papers
2007-011, Friedrich-Schiller-University Jena.
- Regner, Tobias & Barria, Javier A., 2009. "Do consumers pay voluntarily? The case of online music," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 395-406, August.
- Tobias Regner & Javier A. Barria, 2009. "Do Consumers Pay Voluntarily? The Case of Online Music," Post-Print hal-00686341, HAL.
- Simon G�chter & Arno Riedl, 2003.
"Moral Property Rights in Bargaining with Infeasible Claims,"
Tinbergen Institute Discussion Papers
03-055/1, Tinbergen Institute.
- Simon Gächter & Arno Riedl, 2005. "Moral Property Rights in Bargaining with Infeasible Claims," Management Science, INFORMS, vol. 51(2), pages 249-263, February.
- Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard, 1986. "Fairness as a Constraint on Profit Seeking: Entitlements in the Market," American Economic Review, American Economic Association, vol. 76(4), pages 728-41, September.
- Buchheit, Steve & Feltovich, Nick, 2010.
"Experimental evidence of a sunk–cost paradox: a study of pricing behavior in Bertrand–Edgeworth duopoly,"
SIRE Discussion Papers
2010-124, Scottish Institute for Research in Economics (SIRE).
- Steve Buchheit & Nick Feltovich, 2011. "Experimental Evidence Of A Sunk‐Cost Paradox: A Study Of Pricing Behavior In Bertrand–Edgeworth Duopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 52(2), pages 317-347, 05.
- Kim Ju-Young & Natter Martin & Spann Martin, 2010. "Kish: Where Customers Pay As They Wish," Review of Marketing Science, De Gruyter, vol. 8(2), pages 1-14, July.
When requesting a correction, please mention this item's handle: RePEc:mar:magkse:201304. 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: (Bernd Hayo)
If references are entirely missing, you can add them using this form.