Paying For a Chance to Save Money: Participation Fees in Name-Your-Own-Price Selling

We report results of an incentive-compatible experiment that tests the economic-theoretical prediction that name-your-own-price retailers, such as Priceline, should benefit from charging upfront participation fees. As predicted, such fees are profitable. We propose and estimate behaviorally enriched models (involving risk-aversion and myopia) of the observed consumer entry and bidding behavior.


Robert Zeithammer, Martin Spann, Gerald Haubl, and Lucas Stich (2015) ,"Paying For a Chance to Save Money: Participation Fees in Name-Your-Own-Price Selling", in NA - Advances in Consumer Research Volume 43, eds. Kristin Diehl , Carolyn Yoon, and , Duluth, MN : Association for Consumer Research, Pages: 750-750.


Robert Zeithammer, University of California Los Angeles, USA
Martin Spann, University of Munich, Germany
Gerald Haubl, University of Alberta, Canada
Lucas Stich, University of Munich, Germany


NA - Advances in Consumer Research Volume 43 | 2015

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