Behavioral Issues in Pricing Management

The Oxford Handbook of Pricing Management, O. Ozer & R. Phillips, eds., Oxford University Press, 2012

48 Pages Posted: 12 Oct 2011 Last revised: 14 Oct 2017

See all articles by Özalp Özer

Özalp Özer

Jindal School of Management - The University of Texas at Dallas

Yanchong Zheng

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Date Written: October 12, 2011

Abstract

Psychological and emotional concerns are integral parts of human decision making, and thus important driving factors for the efficiency of economic systems full of human agents. This book chapter describes how these concerns induce human decisions that deviate from the predictions of neoclassical economic theories, and how such deviations affect pricing management in both areas of consumer pricing and pricing contracts among firms. We discuss an extensive spectrum of recent findings in behavioral economics, especially in a pricing context, and elaborate on the implications of these behavioral regularities for pricing strategies.

Keywords: consumer pricing, pricing contracts, behavioral economics, experimental economics

Suggested Citation

Özer, Özalp and Zheng, Yanchong, Behavioral Issues in Pricing Management (October 12, 2011). The Oxford Handbook of Pricing Management, O. Ozer & R. Phillips, eds., Oxford University Press, 2012. Available at SSRN: https://ssrn.com/abstract=1943035

Özalp Özer

Jindal School of Management - The University of Texas at Dallas ( email )

Jindal School of Management
800 W. Campbell Road
Richardson, TX 75080
United States

Yanchong Zheng (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

100 Main Street
E62-416
Cambridge, MA 02142
United States

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