Delay discounting determines delivery fees in an e‐commerce simulation: A behavioral economic perspective

Donald A. Hantula · Kimberly Bryant

60 citations0/0 files storedPsychology and Marketing

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Decision-Making and Behavioral Economics Consumer Market Behavior and Pricing Economic and Environmental Valuation

Abstract

Abstract Participants ordered music CDs and bargained for delivery time and fees in a simulated on‐line store. After ordering a CD, participants engaged in a delivery‐fee bargaining task that was embedded in a psychophysical up–down staircase titration procedure in which options of next‐day delivery for a fee and delayed free delivery were made more or less attractive based on previous choices. A hyperbolic function derived from the matching law fit the data. These results are consistent with a behavioral‐economic account of intertemporal choice in which delivery fees are seen as a swap of money for time. © 2005 Wiley Periodicals, Inc.

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References

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