Arbeitspapier
Price framing
We present a laboratory experiment on the impact of price framing on consumer decision making. Consumer subjects face a search market where two sellers offer a homogenous good. We examine six different price frames with linear per-unit pricing (that is displayed as such) serving as a benchmark. We find that all frames deviating from the benchmark have some negative impact on consumer decision making. The most striking result concerns drip pricing (where prices are decomposed into three elements and dripped in during the purchasing process). While leaving the actual decision problem unchanged, drip pricing wipes out 25% of consumer surplus.
- Language
-
Englisch
- Bibliographic citation
-
Series: WZB Discussion Paper ; No. SP II 2013-314
- Classification
-
Wirtschaft
Noncooperative Games
Design of Experiments: Laboratory, Group Behavior
Firm Behavior: Theory
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
- Event
-
Geistige Schöpfung
- (who)
-
Huck, Steffen
Schmid, Julia
Wallace, Brian
- Event
-
Veröffentlichung
- (who)
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Wissenschaftszentrum Berlin für Sozialforschung (WZB)
- (where)
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Berlin
- (when)
-
2013
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Huck, Steffen
- Schmid, Julia
- Wallace, Brian
- Wissenschaftszentrum Berlin für Sozialforschung (WZB)
Time of origin
- 2013
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