Nudging Price With Fit: The Influence Of Is Design On Price Selection In Innovative Online Pricing Mechanisms

This research pertains to IS design and its influence on boundedly rational decision-makers in online choice environments. Specifically, we investigate nudges (aspects of design that alter behavior without forbidding options or changing incentives) in the context of an innovative pricing model known as pay-what-you-want, in which buyers can pay any amount for a good or service. We posit that nudges can effectively influence choice when there exists a fit between the nudge and characteristics of the decision-maker, achieved through nudge personalization. We propose a field study to test the prediction that a personalized nudge can increase the price a buyer selects in a pay-what-you-want setting. The study will contribute to research on IS design, its role for outcomes in innovative pricing models, and irrational decision-making in IS.