Pricing · Laboratory experiments varying PWYW, posted-price competition, and seller pricing-strategy choice
Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets
Management Science · 2014
Summary
Outcome-based social preferences and strategic considerations explain voluntary payments; posted-price competition lowers payments, prevents full market penetration, and most sellers choose posted prices when given the choice.
For your marketing
Possible founder application
Use as a bounded example of pay what you want as a marketing strategy in monopolistic and competitive markets; compare its context and design with your own market before applying its result.
Reported result
What the study found
Outcome-based social preferences and strategic considerations explain voluntary payments; posted-price competition lowers payments, prevents full market penetration, and most sellers choose posted prices when given the choice.
Research question
What the authors investigated
Pay What You Want as a Marketing Strategy in Monopolistic and Competitive Markets?
Design
Laboratory experiments varying PWYW, posted-price competition, and seller pricing-strategy choice
Sample and setting
Experimental buyers and sellers in monopolistic and competitive market environments
Scope and transfer
Limitations to keep in view
Laboratory market choices and constructed competition may not capture real purchasing stakes, repeat relationships, or operational constraints in commercial PWYW deployments. The accessible publisher page was used for this listing; correction history was not independently checked.
Research sources
The article reports laboratory experiments with monopolistic and competitive markets and finds PWYW can be viable in monopoly but is less successful against a posted-price competitor. Publisher page was directly retrieved; detailed full-text methods were not independently verified.