Report
A Taste for Bargains
Abstract
Do consumers have a taste for bargains? The results of marketing experiments are consistent with consumers having such a taste, but their findings are not distinguished from behavior predicted by standard models in which consumers draw inferences from price. In the present study, I propose a conceptual framework that captures the psychological intuition of how bargains affect choice, and I implement two experiments that test for a taste for bargains in the absence of informational confounds.