How social comparison influences reference price formation in a service context.

Viglia, G. and Abrate, G., 2014. How social comparison influences reference price formation in a service context. Journal of Economic Psychology, 45, 168 - 180.

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DOI: 10.1016/j.joep.2014.09.003

Abstract

What is the influence on reference price when the source of price information is anonymous versus social? This article investigates the formation of reference prices given an observed sequence of past prices in a service context. An experimental study suggests that, considering the same price information, if the source is social (i.e., the prices paid by colleagues), then consumers want to pay less. More specifically, social comparison changes the way individuals weigh information, attributing more importance to the lowest historical prices and to the range in price variations.

Item Type:Article
ISSN:0167-4870
Uncontrolled Keywords:reference price, social comparison, dynamic pricing, Prelec weighting function
Subjects:UNSPECIFIED
Group:Faculty of Management
ID Code:21671
Deposited By: Unnamed user with email symplectic@symplectic
Deposited On:02 Feb 2015 16:04
Last Modified:02 Aug 2016 11:53

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