Paying More When Paying for Others

  title={Paying More When Paying for Others},
  author={Minah H. Jung and Leif D. Nelson and Ayelet Gneezy and Uri Gneezy},
  journal={Consumer Social Responsibility eJournal},
Social behavior is heavily influenced by the perception of the behaviors of others. We considered how perceptions (and misperceptions) of kindness can increase generosity in economic transactions. We investigated how these perceptions can alter behavior in a novel real-life situation that pitted kindness against selfishness. That situation, consumer elective pricing, is defined by an economic transaction allowing people to purchase goods or services for any price (including zero). Field and lab… 

Why do we overestimate others’ willingness to pay?

People typically overestimate how much others are prepared to pay for consumer goods and services. We investigated the extent to which latent beliefs about others’ affluence contribute to this

The Behavioral Perspective on Pay What You Want Pricing

PWYW pricing has always been non-normative from an economic perspective. As explained by Egbert (2017), it runs counter to neoclassical economic assumptions that consumers should behave rationally in

The Effects of Altruism and Social Background in an Online-Based, Pay-What-You-Want Situation

Pay-What-You-Want (PWYW) is a participative pricing mechanism that leaves it up to the customer to choose a purchase price. Presently, the factors that influence customers’ willingness to pay are

A Triadic Model of Social Motivations in Pay-What-You-Want Decisions

The authors propose a framework for understanding the interplay of the motivations driving consumers’ price decisions in pay-what-you-want (PWYW) contexts. A series of five studies demonstrate that

The Role of Gender in Pay-What-You-Want Contexts

This research highlights how gender shapes consumer payments in pay-what-you-want contexts. Four studies involving hypothetical and real payments show that men typically pay less than women in

How consumers respond to social norms: an evidence from pay-what-you-want (PWYW) pricing

PurposeThis paper aims to investigate consumer behaviour in response to social norms under pay-what-you-want (PWYW) pricing. Specifically, it explores the critical role of social norms such as norm

Signaling Virtue: Charitable Behavior Under Consumer Elective Pricing

Four field experiments examined the quantitative and qualitative forces influencing behaviors under consumer elective pricing called “shared social responsibility” (SSR, Gneezy, Gneezy, Nelson, &

Overestimating the Valuations of Others: People Perceive Others as Experiencing Everything More Intensely

People often make judgments about their own and others’ valuations and preferences. Across 12 studies (N=17,939), we find a robust bias in these judgments such that people tend to believe that others

Determinants in Pay-What-You-Want Pricing Decisions—A Cross-Country Study

Pay-what-you-want (PWYW) pricing has attracted much attention recently. Current research focused on influencing factors and their power across social contexts and countries. This article

The Impact of Price Anchoring on Consumers' Valuation of Digital Goods

This study examines the role of reference prices as set by different sources in influencing users’ motivation to pay for digital goods. Prior research has shown that a firm can best capture the



Shared Social Responsibility: A Field Experiment in Pay-What-You-Want Pricing and Charitable Giving

Switching from corporate social responsibility to what the authors term shared social responsibility works in part because customized contributions allow customers to directly express social welfare concerns through the purchasing of material goods.

Pay what you want ” as a profitable pricing strategy : Theory and experimental evidence

Prevailing wisdom in the literature suggests that the success of a “pay what you want” (PWYW) pricing strategy depends on consumers’ altruistic inclinations, sense of fair play, or consumers’

Pay-what-you-want, identity, and self-signaling in markets

It is shown that often, when granted the opportunity to name the price of a product, fewer consumers choose to buy it than when the price is fixed and low, driven largely by individuals’ identity and self-image concerns.

Paying it forward: generalized reciprocity and the limits of generosity.

In 5 experiments, participants received greedy, equal, or generous divisions of money or labor from an anonymous person and then divided additional resources with a new anonymous person, such that a positive affect intervention disrupted the tendency to pay greed forward.

Testing for Altruism and Social Pressure in Charitable Giving

A door-to-door fund-raiser in which some households are informed about the exact time of solicitation with a flyer on their doorknobs is designed, finding that the flyer reduces the share of households opening the door by 9% to 25% and reduces giving by 28% to 42%.

Moral credentials and the expression of prejudice.

Three experiments supported the hypothesis that people are more willing to express attitudes that could be viewed as prejudiced when their past behavior has established their credentials as

Motivational Cherry Picking

We construct a simple three person trust game with one trustor and two trustees. The trustor has the possibility to either trust both trustees or none, while the trustees make their decisions either