We take a new look at the relationship between utility derived from a product and willingness to pay by doing experiments with an experience good, theatre plays, in which audience members use a pay-what-you-want system for their tickets. Using several satisfaction measures, including ex-ante and ex-post questionnaires and facial recognition software, we find that, after controlling for observables, payment increases with the degree in which a product actually meets individual expectations.
CREED Seminars Amsterdam
- Speaker(s)
- Pedro Rey-Biel (Universitat Autonoma de Barcelona, Spain)
- Date
- Thursday, 25 June 2015
- Location
- Amsterdam