Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets

@article{Schmidt2015PayWY,
  title={Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets},
  author={K. M. Schmidt and M. Spann and Robert Zeithammer},
  journal={IO: Theory eJournal},
  year={2015}
}
  • K. M. Schmidt, M. Spann, Robert Zeithammer
  • Published 2015
  • Economics, Computer Science
  • IO: Theory eJournal
  • Pay what you want PWYW can be an attractive marketing strategy to price discriminate between fair-minded and selfish customers, to fully penetrate a market without giving away the product for free, and to undercut competitors that use posted prices. We report on laboratory experiments that identify causal factors determining the willingness of buyers to pay voluntarily under PWYW. Furthermore, to see how competition affects the viability of PWYW, we implement markets in which a PWYW seller… CONTINUE READING
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