Social behavior is heavily influenced by the perception of the behaviors of others. We consider how perceptions (and misperceptions) of kindness can increase generosity in economic transactions. We investigate how these perceptions alter behavior in a novel a real-life situation which pits...

A field experiment (N=113,047 participants) manipulated two factors in the sale of souvenir photos. First, some customers saw a traditional fixed price, whereas others could pay what they wanted (including $0). Second, approximately half of the customers saw a variation in which half of the...

Consumers with limited discretionary money face important trade-offs when deciding how to spend it. In the current research, we suggest that feelings of financial constraint increase consumers' concern about the lasting utility of their purchases, which in turn increases their preference for...