TY  - JOUR
A1  - Bruttel, Lisa Verena
T1  - The effects of recommended retail prices on consumer and retailer behaviour
T2  - Economica
N2  - This paper presents results from an experiment on the effects of recommended retail prices on consumer and retailer behaviour. We present evidence that recommended retail prices, despite their non-binding nature, influence consumers’ willingness to pay by setting a reference point. At a given price, consumers buy more the higher the recommended retail price is, and their demand drops at prices above the recommended retail price, even when it is entirely uninformative about the value of the product. Retailers in this study are subject to similar anchoring effects, but they do not anticipate consumers’ behaviour well and are thus not able to exploit their behavioural biases.
Y1  - 2018
UR  - https://publishup.uni-potsdam.de/frontdoor/index/index/docId/52701
SN  - 0013-0427
SN  - 1468-0335
VL  - 85
IS  - 339
SP  - 649
EP  - 668
PB  - Wiley
CY  - Hoboken
ER  -