Type: Working Paper
Do Consumers Care about How Prices Are Set?
Working Paper, EUI ECO, 2008/03
COURTY, Pascal, PAGLIERO, Mario, Do Consumers Care about How Prices Are Set?, EUI ECO, 2008/03 - http://hdl.handle.net/1814/7763
Retrieved from Cadmus, EUI Research Repository
Using a survey approach, we ask consumers to reveal their preferences over pricing schemes that may differ in terms of the average price of consumption, the amount of price variation, and the probability of being rationed. We find that consumers dislike pricing schemes that vary prices more but that they are willing to trade off price variation and rationing. Surprisingly, they are not willing to trade off an increase in price variation for a decrease in expected prices. We discuss the implications of these findings for firm pricing policies.
Cadmus permanent link: http://hdl.handle.net/1814/7763
Series/Number: EUI ECO; 2008/03
Publisher: European University Institute