What Happens When You Pay What You Want?

Affecting a firm’s revenue, when consumers can determine price through pay-what-you-want, the amount they select depends on their unselfish self-signaling.

A Fine That Backfired

Sometimes, deterrents won’t work. Our story begins at several Israeli day-care centers. Because some parents were picking up their children after dismissal time, two economists suggested a fine. To their surprise, the number of latecomers more than doubled after it…