characteristics. We first show how preferences that account for price and unit cost constrain the firm’s pricing power and profit …

Pay What You Want (PWYW) can be an attractive marketing strategy to price discriminate between fair-minded and selfish … monopolistic market, but it is less successful as a competitive strategy because it does not drive traditional posted-price sellers … out of the market. Instead, the existence of a posted-price competitor reduces buyers' payments and prevents the PWYW …

shrouded or indicated separately, but they also drop out more often when the overall price becomes known at the check-out. In … sum, the demand distribution is independent of the price presentation. This result qualifies previous findings on the …

subjects are willing to pay at least the full per-unit price, with a substantial fraction willing to overpay. The optimal firm … by 8 - 15% compared to only offering a pay-per-use contract. -- access services ; pricing contracts ; decision biases …

We analyze price dispersion using panel data from a large price comparison site. We use past pricing behavior to … greater price adjustment costs result in greater price dispersion. Although the impact of price adjustment costs on price … dispersion became weaker over time, the causal effect of price adjustment costs on price dispersion is still present at the end …

explains large price heterogeneities across buyers, drug classes, and time periods. Additionally, of the drug price variation … transaction volume, buyer's loyalty, and multiple drug purchases strengthens buyer's bargaining power and results in a drug price …

general demand function, we analyse the effects of cost changes in a seminal model of price dispersion, where some consumers … industry-wide cost increase, we show how the magnitudes of price rises faced by different consumer types, as well as the wider … effects on price dispersion, depend upon whether demand is log-concave or log-convex. Furthermore, we examine whether the …

. We document that price setting frictions, arising from adjustment costs of human decision makers, induce a conflict of … price recommendations are strategically biased and lead to suboptimal pricing by human decision makers. We quantify the … interest with the algorithmic advisor. A model of advice with costly price adjustments shows that, in equilibrium, algorithmic …

We study price formation in the standard model of consumer search for differentiated products but allow for search cost … allows us to analyze the manner in which prices affect the decision to search rather than to not search at all, which is an … important but often neglected aspect of the price mechanism. Recognizing the role the equilibrium price plays in consumers …

on the assumption that a consumer's purchasing decision is distorted by salient thinking, i.e. by the fact that he … overvalues a product attribute - quality or price - that stands out in a particular choice situation. In a highly competitive low-price … environment like on an online platform, consumers focus more on price rather than quality. Especially if the market power of local …