A Game-Theoretic Model of the Consumer Behavior under Pay-What-You-Want Pricing Strategy

@article{Ashrafimoghari2022AGM,
  title={A Game-Theoretic Model of the Consumer Behavior under Pay-What-You-Want Pricing Strategy},
  author={Vahid Ashrafimoghari and Jordan W. Suchow},
  journal={SSRN Electronic Journal},
  year={2022}
}
In a digital age where companies face rapid changes in technology, consumer trends, and business environments, there is a critical need for continual revision of the business model in response to disruptive innovation. A pillar of innovation in business practices is the adoption of novel pricing schemes, such as Pay-What-You-Want (PWYW). In this paper, we employed game theory and behavioral economics to model consumers’ behavior in response to a PWYW pricing strategy where there is an… 

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