We conduct a field experiment at a nonprofit organization’s online store to study how demand changes when consumers’ purchases generate revenue for a charitable cause. Consumers respond strongly when their purchases generate small donations by an anonymous outside group, but responses are substantially weaker when the outside donations are relatively large. Responses are also strong when the ou...

producers and consumers’ price behavior were analyzed in chicken meat market in fars province. monthly average producers and consumers prices from june 1997 to july 2008 were taken into account. changes in the producer and consumer prices indicated that the prices follow an increasing trend with much fluctuations. marketing margin has an increasing trend of violent fluctuations. the result of g...

For many goods and services, such as cellular-phone service and debit-card transactions, the price of the next unit of service depends on past usage. As a result, consumers who are inattentive to their past usage but are aware of contract terms may remain uncertain about the price of the next unit. I develop a model of inattentive consumption, derive equilibrium pricing when consumers are inatt...

Thirty years ago, psychologist Daniel Kahneman and economists Jack Knetsch, and Richard Thaler (1986a & b) proposed that fairness matters in the marketplace. They presented evidence-based community rules of fairness that are encapsulated in the “principle of dual entitlement”; consumers are entitled to the reference transaction (e.g., price) and, similarly, the firm is entitled to its reference...

This study investigated the effects of price transparency on consumers’price perceptions. Our two-dimensional information transparency framework (sufficiency and diagnosticity of pricing information) is grounded in the Heuristic-Systematic Model of Persuasion. Real-life online hotel booking sites were used for hypothesis testing. Our results show that consumers’ price fairness perceptions and w...

A model is considered where firms internalize the regret costs that consumers experience when they see an unexpected price change. Regret costs are assumed to be increasing in the size of price changes and this can explain why the size of price increases is less sensitive to inflation than in models with fixed costs of changing prices. The latter predict unrealistically large responses of price...