pricing Archives - BehavioralEconomics.com | The BE Hub https://www.behavioraleconomics.com/tag/pricing/ Home of the Behavioral Economics Guide and the Behavioral Economics Academy. A behavioral science hub hosting information, discussions and resources. Mon, 04 Dec 2023 06:45:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 179258705 Pricing Strategy: How Our Brains Keep Us Stuck https://www.behavioraleconomics.com/pricing-strategy-how-our-brains-keep-us-stuck/ https://www.behavioraleconomics.com/pricing-strategy-how-our-brains-keep-us-stuck/#respond Mon, 04 Dec 2023 06:02:32 +0000 https://www.behavioraleconomics.com/?p=10768 Pricing strategy is a funny area of business that everyone seems to hate. What role does the brain play in this, and how can you leverage behavioral economics to overcome your brain’s natural tendencies?

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]]> https://www.behavioraleconomics.com/pricing-strategy-how-our-brains-keep-us-stuck/feed/ 0 10768 The Behavioral Economics of Price-Setting https://www.behavioraleconomics.com/the-behavioral-economics-of-price-setting/ https://www.behavioraleconomics.com/the-behavioral-economics-of-price-setting/#respond Tue, 07 Dec 2021 06:24:39 +0000 https://www.behavioraleconomics.com/?p=9005 Prospect theory proposes that when making decisions people use a reference point to frame prospective alternative outcomes as either potential gains or losses; when considering prospective gains, they are risk-averse and prefer certainty, but when considering prospective losses, they are risk-prone and prefer to risk the possibility of larger but uncertain losses. However, when setting prices people make decisions that contradict prospect theory: they are risk prone when cutting prices with the prospect of revenue gains, and risk averse when raising prices that they associate with perceived revenue losses.

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]]> https://www.behavioraleconomics.com/the-behavioral-economics-of-price-setting/feed/ 0 9005 Mental Money: The Psychology of Subscription Payment Options https://www.behavioraleconomics.com/mental-money-the-psychology-of-subscription-payment-options/ https://www.behavioraleconomics.com/mental-money-the-psychology-of-subscription-payment-options/#comments Mon, 17 Jul 2017 10:33:12 +0000 http://www.behavioraleconomics.com/?p=3503 What goes through your head when choosing between different payment options?

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]]> https://www.behavioraleconomics.com/mental-money-the-psychology-of-subscription-payment-options/feed/ 3 3503 The Artist Is Present https://www.behavioraleconomics.com/the-artist-is-present/ https://www.behavioraleconomics.com/the-artist-is-present/#comments Mon, 20 Jun 2016 10:52:25 +0000 http://www.behavioraleconomics.com/?p=940 Emerging insights on “temporal contagion” explain the unusual contours of limited-edition markets.

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