Paying More When Paying for Others

@article{Jung2014PayingMW,
  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},
  year={2014}
}
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… Expand
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 thisExpand
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 inExpand
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 areExpand
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 thatExpand
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 inExpand
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 normExpand
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, &Expand
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 othersExpand
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 articleExpand
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 theExpand
...
1
2
3
4
5
...

References

SHOWING 1-10 OF 127 REFERENCES
Shared Social Responsibility: A Field Experiment in Pay-What-You-Want Pricing and Charitable Giving
TLDR
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. Expand
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’Expand
NOTES AND COMMENTS GIVING ACCORDING TO GARP: AN EXPERIMENTAL TEST OF THE CONSISTENCY OF PREFERENCES FOR ALTRUISM
Subjects in economic laboratory experiments have clearly expressed an interest in behaving unselfishly. They cooperate in prisoners’ dilemma games, they give to public goods, and they leave money onExpand
Pay-what-you-want, identity, and self-signaling in markets
TLDR
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. Expand
Paying it forward: generalized reciprocity and the limits of generosity.
TLDR
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. Expand
Testing for Altruism and Social Pressure in Charitable Giving
TLDR
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%. Expand
Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets
TLDR
The experimental results show that outcome-based social preferences and strategic considerations to keep the seller in the market can explain why and how much buyers pay voluntarily to a PWYW seller. Expand
Do consumers pay voluntarily? The case of online music☆
The paper analyses the payment behaviour of customers of the online music label Magnatune. Customers may pay what they want for albums, as long as the payment is within a given price range ($5-$18).Expand
Moral credentials and the expression of prejudice.
  • B. Monin, D. Miller
  • Psychology, Medicine
  • Journal of personality and social psychology
  • 2001
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 asExpand
Expressed preferences and behavior in experimental games
TLDR
There is evidence that positive reciprocity is enhanced when a preference for favorable treatment is expressed, and this work finds that responder behavior differs substantially according to whether first movers express a hope for favorable or unfavorable treatment. Expand
...
1
2
3
4
5
...