Erratum on the pay as you wish model by Chen et al. (2017)
- Autor(en)
- Karl Akbari, Udo Wagner
- Abstrakt
In their model of consumer behavior in pay-as-you-wish (PAYW) pricing, Chen et al. (2017) (CKZ hereaf-ter) imply that all less fair-minded consumers with low concerns of advantageous inequity aversion, that is, γ
i ≤ 1, will buy and pay zero, that is, freeload. However, consumers buy only if their utility exceeds zero: A consumer with γ
i ≤ 1 and r
i ≤ c has a positive utility, u
i > 0, only if r
i > γ
i c, and the correct share of freeloaders should be [Formula Presented] whereas the share of less fair-minded consumers who do not freeload should be [Formula Presented] When we postulate γ to be distributed according to some distribution h
[0,1] (γ
i ) in the domain [0, 1] and as-sume a uniform distribution of consumption utilities ϕ(r
i ) = 1, the share of freeloaders can be expressed as [Formula Presented] with ¯γ
[0,1] as the mean of γ in [0, 1] and θ
CKZ = θ + δ as the share of less fair-minded consumers, and hence the profits under PAYW (equations (4) and (5) in CKZ) were underestimated and should be given by [Formula Presented].
- Organisation(en)
- Institut für Marketing und International Business
- Journal
- Marketing Science: the marketing journal of INFORMS
- Band
- 41
- Seiten
- 657
- Anzahl der Seiten
- 1
- ISSN
- 0732-2399
- DOI
- https://doi.org/10.1287/mksc.2021.1319
- Publikationsdatum
- 2020
- Peer-reviewed
- Ja
- ÖFOS 2012
- 502020 Marktforschung
- Schlagwörter
- ASJC Scopus Sachgebiete
- Marketing, Business and International Management
- Link zum Portal
- https://ucris.univie.ac.at/portal/de/publications/erratum-on-the-pay-as-you-wish-model-by-chen-et-al-2017(cfb44cf6-2a9c-4b2d-b235-eefc2ee7f00c).html