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A Survey of the Empirical Evidence on PWYW Pricing

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  • Greiff, Matthias
  • Egbert, Henrik

Abstract

We review a large number of empirical studies on Pay-What-You-Want (PWYW) pricing. We distinguish between laboratory experiments, field experiments, survey experiments and case studies. Based on this survey we identify the following two gaps in the recently flourishing literature on PWYW pricing: (1) studies on PWYW pricing for goods with high cost, and (2) studies on the long-term effects of PWYW pricing.

Suggested Citation

  • Greiff, Matthias & Egbert, Henrik, 2016. "A Survey of the Empirical Evidence on PWYW Pricing," MPRA Paper 68693, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:68693
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    References listed on IDEAS

    as
    1. 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.
    2. Michal Krawczyk & Anna Kukla-Gryz & Joanna Tyrowicz, 2015. "Pushed by the crowd or pulled by the leaders? Peer effects in Pay-What-You-Want," Working Papers 2015-25, Faculty of Economic Sciences, University of Warsaw.
    3. James Murphy & P. Allen & Thomas Stevens & Darryl Weatherhead, 2005. "A Meta-analysis of Hypothetical Bias in Stated Preference Valuation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 30(3), pages 313-325, March.
    4. Regner, Tobias & Riener, Gerhard, 2012. "Voluntary payments, privacy and social pressure on the internet: A natural field experiment," DICE Discussion Papers 82, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    5. 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.
    6. Azar, Ofer H., 2007. "Why pay extra? Tipping and the importance of social norms and feelings in economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 250-265, April.
    7. Ju-Young Kim & Katharina Kaufmann & Manuel Stegemann, 2014. "The impact of buyer–seller relationships and reference prices on the effectiveness of the pay what you want pricing mechanism," Marketing Letters, Springer, vol. 25(4), pages 409-423, December.
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    11. Henrik Egbert & Matthias Greiff & Kreshnik Xhangolli, 2015. "Pay What You Want (PWYW) pricing ex post consumption: a sales strategy for experience goods," Journal of Innovation Economics, De Boeck Université, vol. 0(1), pages 249-264.
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    16. repec:eee:jeborg:v:136:y:2017:i:c:p:125-140 is not listed on IDEAS
    17. Egbert, Henrik & Greiff, Matthias & Xhangolli, Kreshnik, 2014. "PWYW Pricing ex post Consumption: A Sales Strategy for Experience Goods," MPRA Paper 53376, University Library of Munich, Germany.
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    Cited by:

    1. Gerpott, Torsten J. & Schneider, Christina, 2016. "Buying behaviors when similar products are available under pay-what-you-want and posted price conditions: Field-experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 65(C), pages 135-145.
    2. Egbert, Henrik, 2017. "The Gift and Pay-What-You-Want Pricing," MPRA Paper 82066, University Library of Munich, Germany.
    3. Gravert, Christina, 2017. "Pride and patronage - pay-what-you-want pricing at a charitable bookstore," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 67(C), pages 1-7.

    More about this item

    Keywords

    Pay-What-You-Want; PWYW; pricing mechanism; survey; empirical studies;

    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M30 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - General

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