Measuring the cost of making payment decisions

B-Tier
Journal: Journal of Behavioral and Experimental Economics
Year: 2008
Volume: 37
Issue: 6
Pages: 2411-2416

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This short paper proposes a simple method of calibrating for the non-monetary costs associated with using different payment plans. These non-monetary costs often lead consumers to choose a flat-rate subscription plan rather than paying separately for each unit of consumption, despite the fact that the pay-per-use plan turns out to be cheaper ex post. The calibration results hint that these costs are relatively higher for "inexpensive" services than for "expensive" services.

Technical Details

RePEc Handle
repec:eee:soceco:v:37:y:2008:i:6:p:2411-2416
Journal Field
Experimental
Author Count
1
Added to Database
2026-01-29