Zero as a Special Price: The True Value of Free Products
Author
Abstract
Suggested Citation
DOI: 10.1287/mksc.1060.0254
Download full text from publisher
References listed on IDEAS
- Greg M. Allenby & Peter E. Rossi, 1991. "Quality Perceptions and Asymmetric Switching Between Brands," Marketing Science, INFORMS, vol. 10(3), pages 185-204.
- Luce, Mary Frances, 1998. "Choosing to Avoid: Coping with Negatively Emotion-Laden Consumer Decisions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 24(4), pages 409-433, March.
- Utpal M. Dholakia & Itamar Simonson, 2005. "The Effect of Explicit Reference Points on Consumer Choice and Online Bidding Behavior," Marketing Science, INFORMS, vol. 24(2), pages 206-217, October.
- Daniel Kahneman & Amos Tversky, 2013.
"Prospect Theory: An Analysis of Decision Under Risk,"
World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127,
World Scientific Publishing Co. Pte. Ltd..
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
- Amos Tversky & Daniel Kahneman, 1979. "Prospect Theory: An Analysis of Decision under Risk," Levine's Working Paper Archive 7656, David K. Levine.
- Drazen Prelec & George Loewenstein, 1998. "The Red and the Black: Mental Accounting of Savings and Debt," Marketing Science, INFORMS, vol. 17(1), pages 4-28.
- Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 73-106.
- John T. Gourville & Dilip Soman, 2005. "Overchoice and Assortment Type: When and Why Variety Backfires," Marketing Science, INFORMS, vol. 24(3), pages 382-395, July.
- Uri Simonsohn & George Loewenstein, 2006. "Mistake #37: The Effect of Previously Encountered Prices on Current Housing Demand," Economic Journal, Royal Economic Society, vol. 116(508), pages 175-199, January.
- Chapman, Gretchen B. & Johnson, Eric J., 1999. "Anchoring, Activation, and the Construction of Values, , , , , ," Organizational Behavior and Human Decision Processes, Elsevier, vol. 79(2), pages 115-153, August.
- McGraw, A Peter & Tetlock, Philip E & Kristel, Orie V, 2003. "The Limits of Fungibility: Relational Schemata and the Value of Things," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 30(2), pages 219-229, September.
- Shlomo Benartzi & Richard H. Thaler, 2002. "How Much Is Investor Autonomy Worth?," Journal of Finance, American Finance Association, vol. 57(4), pages 1593-1616, August.
- Huber, Joel & Payne, John W & Puto, Christopher, 1982. "Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 9(1), pages 90-98, June.
- Ariely, Dan & Loewenstein, George & Prelec, Drazen, 2006.
"Tom Sawyer and the construction of value,"
Journal of Economic Behavior & Organization, Elsevier, vol. 60(1), pages 1-10, May.
- Dan Ariely & George Loewenstein & Drazen Prelec, 2005. "Tom Sawyer and the construction of value," Working Papers 05-10, Federal Reserve Bank of Boston.
- France Leclerc & Christopher K. Hsee & Joseph C. Nunes, 2005. "Narrow Focusing: Why the Relative Position of a Good in Its Category Matters More Than It Should," Marketing Science, INFORMS, vol. 24(2), pages 194-205, August.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Dan Ariely & Kristina Shampan'er, 2006. "How small is zero price? : the true value of free products," Working Papers 06-16, Federal Reserve Bank of Boston.
- Eugene J. S. Won, 2007. "—A Theoretical Investigation of the Effects of Similarity on Brand Choice Using the Elimination-by-Tree Model," Marketing Science, INFORMS, vol. 26(6), pages 868-875, 11-12.
- Marco Bertini & Luc Wathieu, 2008. "Research Note—Attention Arousal Through Price Partitioning," Marketing Science, INFORMS, vol. 27(2), pages 236-246, 03-04.
- Fischer, Greg & Karlan, Dean & McConnell, Margaret & Raffler, Pia, 2019.
"Short-term subsidies and seller type: A health products experiment in Uganda,"
Journal of Development Economics, Elsevier, vol. 137(C), pages 110-124.
- Fischer, Greg & Karlan, Dean & McConnell, Margaret & Raffler, Pia, 2019. "Short-term subsidies and seller type: a health products experiment in Uganda," LSE Research Online Documents on Economics 91600, London School of Economics and Political Science, LSE Library.
- A. Peter McGraw & Eldar Shafir & Alexander Todorov, 2010. "Valuing Money and Things: Why a $20 Item Can Be Worth More and Less Than $20," Management Science, INFORMS, vol. 56(5), pages 816-830, May.
- Cheng, Yin-Hui & Chuang, Shih-Chieh & Pei-I Yu, Annie & Lai, Wan-Ting, 2019. "Change in your wallet, change your choice: The effect of the change-matching heuristic on choice," Journal of Retailing and Consumer Services, Elsevier, vol. 49(C), pages 67-76.
- Konstantinos Ioannidis & Theo Offerman & Randolph Sloof, 2020.
"On the effect of anchoring on valuations when the anchor is transparently uninformative,"
Journal of the Economic Science Association, Springer;Economic Science Association, vol. 6(1), pages 77-94, June.
- Konstantinos Ioannidis & Theo Offerman & Randolph Sloof, 2019. "On the effect of anchoring on valuations when the anchor is transparently uninformative," Tinbergen Institute Discussion Papers 19-074/I, Tinbergen Institute, revised 27 Apr 2020.
- Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
- Stefania Sitzia & Daniel John Zizzo, 2010. "Price low and then price high or price high and then price low?," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2010-08, Centre for Competition Policy, University of East Anglia, Norwich, UK..
- Greg Fischer & Dean Karlan & Margaret McConnell & Pia Raffler, 2014.
"To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda,"
Working Papers
1041, Economic Growth Center, Yale University.
- McConnell, Margaret & Karlan, Dean & Fischer, Greg & Raffler, Pia, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," CEPR Discussion Papers 9999, C.E.P.R. Discussion Papers.
- Fischer, Greg & Karlan, Dean & McConnell, Margaret & Raffler, Pia, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," Working Papers 133, Yale University, Department of Economics.
- Fischer, Greg & Karlan, Dean S. & McConnell, Margaret & Raffler, Pia, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," Center Discussion Papers 169540, Yale University, Economic Growth Center.
- Greg Fischer & Dean Karlan & Margaret McConnell & Pia Raffler, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," NBER Working Papers 20170, National Bureau of Economic Research, Inc.
- Liang Guo, 2016. "Contextual Deliberation and Preference Construction," Management Science, INFORMS, vol. 62(10), pages 2977-2993, October.
- Tanya O’Garra & Matthew R Sisco, 2020. "The effect of anchors and social information on behaviour," PLOS ONE, Public Library of Science, vol. 15(4), pages 1-19, April.
- Isoni, Andrea & Brooks, Peter & Loomes, Graham & Sugden, Robert, 2016.
"Do markets reveal preferences or shape them?,"
Journal of Economic Behavior & Organization, Elsevier, vol. 122(C), pages 1-16.
- Andrea Isoni & Peter Brooks & Graham Loomes & Robert Sugden, 2011. "Do markets reveal preferences - or shape them?," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 11-03, School of Economics, University of East Anglia, Norwich, UK..
- Stephane Hess & Andrew Daly & Richard Batley, 2018. "Revisiting consistency with random utility maximisation: theory and implications for practical work," Theory and Decision, Springer, vol. 84(2), pages 181-204, March.
- On Amir & Dan Ariely & Ziv Carmon, 2008. "The Dissociation Between Monetary Assessment and Predicted Utility," Marketing Science, INFORMS, vol. 27(6), pages 1055-1064, 11-12.
- Jost, Ramona, 2020. "Persistence of commuting habits: Context effects in Germany," IAB-Discussion Paper 202014, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Sitzia, Stefania & Zizzo, Daniel John, 2012. "Price lower and then higher or price higher and then lower?," Journal of Economic Psychology, Elsevier, vol. 33(6), pages 1084-1099.
- Francesco Rigoli & Christoph Mathys & Karl J Friston & Raymond J Dolan, 2017. "A unifying Bayesian account of contextual effects in value-based choice," PLOS Computational Biology, Public Library of Science, vol. 13(10), pages 1-28, October.
- Persichina, Marco & Kriström, Bengt, 2022. "Self-selected intervals in psycho-physic experiments and the measurement of willingness to pay," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 98(C).
- Ifcher, John & Zarghamee, Homa, 2020.
"Behavioral economic phenomena in decision-making for others,"
Journal of Economic Psychology, Elsevier, vol. 77(C).
- Ifcher, John & Zarghamee, Homa, 2018. "Behavioral Economic Phenomena in Decision-Making for Others," IZA Discussion Papers 11946, Institute of Labor Economics (IZA).
More about this item
Keywords
free; zero; affect; pricing;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormksc:v:26:y:2007:i:6:p:742-757. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.