Do consumers prefer round prices? Evidence from pay-what-you-want decisions and self-pumped gasoline purchases

Michael Lynn, Sean Masaki Flynn and Chelsea Helion

Journal of Economic Psychology, 2013, vol. 36, issue C, 96-102

Abstract: Consumers selected round prices and/or sales-totals at greater than chance levels across two different pay-what-you-want situations and one self-pumped gasoline purchase. The differences among these situations suggest that the tendency to select round prices/sales-totals reflects a subjective preference (or liking) for round prices and not a variety of other potential explanatory processes. Discussion focuses on possible economic consequences of this revealed preference for round prices as well as directions for future research.

Keywords: Consumer preference; Pricing; Round numbers (search for similar items in EconPapers)
JEL-codes: D12 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joepsy:v:36:y:2013:i:c:p:96-102

DOI: 10.1016/j.joep.2013.01.010

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