Overcoming consumer biases in the choice of pricing schemes: a lab experiment

Abstrakt

This paper uses experimental data to investigate possible biases in consumers' choice of pricing schemes when their demand is perfectly inelastic but uncertain. I consider three-part pricing schemes (i.e. fixed fee, included units, extra-unit price).

The analysis suggests a strong bias towards the pricing scheme with the number of included units equal to the expected demand.

Klíčová slova

• heuristics
• price discrimination
• consumers' choice