Buyer Behavior in Pay-What-You-Want Pricing

Stich, Lucas and Spann, Martin (2024): Buyer Behavior in Pay-What-You-Want Pricing. In: Ofir, Chezy (ed.) : New Directions in Behavioral Pricing. World Scientific book series in marketing, Vol. 2. New Jersey: World Scientific Publishing Company. pp. 117-141

Abstract

Pay-What-You-Want (PWYW) pricing delegates full control over the price to prospective buyers. Contrary to the rational self-interest prediction that all buyers will take the product and pay nothing, field applications of PWYW show that many buyers do not exploit this control but pay positive prices voluntarily. In this chapter, we discuss three key theoretical accounts that explain buyer behavior in PWYW pricing settings. Based on these theoretical accounts, we discuss implications for the design and effectiveness of PWYW as a pricing mechanism. In addition, we discuss opportunities for future research and practice.

• Item Type: Book Section
• Faculties: Munich School of Management > Institute of Electronic Commerce and Digital Markets
• Subjects: 300 Social sciences > 330 Economics
• ISBN: 978-981-12-9222-4
• Place of Publication: New Jersey
• Language: English