Default Effects Under Pay-What-You-Want: Evidence From the Field

Hannah Pefecto, University of California Berkeley, USA
Minah H. Jung, University of California Berkeley, USA
Leif D. Nelson, University of California Berkeley, USA
Ayelet Gneezy, University of California San Diego, USA
Uri Gneezy, University of California San Diego, USA
Under pay-what-you-want pricing, consumers choose their price. This maximal flexibility in payment provides an excellent environment to investigate effects of choice architecture. Through four archival data sets and two large-scale field experiments, representing 130,000 unique purchases, we find new nuances in the effects of defaults and anchoring on choice.
[ to cite ]:
Hannah Pefecto, Minah H. Jung, Leif D. Nelson, Ayelet Gneezy, and Uri Gneezy (2013) ,"Default Effects Under Pay-What-You-Want: Evidence From the Field", in NA - Advances in Consumer Research Volume 41, eds. Simona Botti and Aparna Labroo, Duluth, MN : Association for Consumer Research.