When Product Managers Gamble with Requirements: Attitudes to Value and Risk
REFSQ '09 Proceedings of the 15th International Working Conference on Requirements Engineering: Foundation for Software Quality
How smart is your smartcard?: measuring travel behaviours, perceptions, and incentives
Proceedings of the 13th international conference on Ubiquitous computing
The Power of Patterns and Pattern Recognition When Developing Information-Based Strategy
Journal of Management Information Systems
Mathematical description and analysis of adaptive risk choice behavior
ACM Transactions on Intelligent Systems and Technology (TIST) - Special section on twitter and microblogging services, social recommender systems, and CAMRa2010: Movie recommendation in context
Gamification of a recycle bin with emoticons
Proceedings of the 8th ACM/IEEE international conference on Human-robot interaction
Emo-Bin: how to recycle more by using emoticons
Proceedings of the 8th ACM/IEEE international conference on Human-robot interaction
Retailers' Use of Shipping Cost Strategies: Free Shipping or Partitioned Prices?
International Journal of Electronic Commerce
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When faced with a choice of selecting one of several available products (or possibly buying nothing), according to standard theoretical perspectives, people will choose the option with the highest cost--benefit difference. However, we propose that decisions about free (zero price) products differ, in that people do not simply subtract costs from benefits but instead they perceive the benefits associated with free products as higher. We test this proposal by contrasting demand for two products across conditions that maintain the price difference between the goods, but vary the prices such that the cheaper good in the set is priced at either a low positive or zero price. In contrast with a standard cost--benefit perspective, in the zero-price condition, dramatically more participants choose the cheaper option, whereas dramatically fewer participants choose the more expensive option. Thus, people appear to act as if zero pricing of a good not only decreases its cost, but also adds to its benefits. After documenting this basic effect, we propose and test several psychological antecedents of the effect, including social norms, mapping difficulty, and affect. Affect emerges as the most likely account for the effect.