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.
Micro Seminars EUR
- Speaker(s)
- Pedro Rey Biel (Universitat Autònoma de Barcelona, Spain)
- Date
- Friday, June 26, 2015
- Location
- Rotterdam