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• W2116730124 abstract "Elementary consumer theory assumes prices affect demand only because they affect the budget constraint (BC). Alternative models, and some evidence, suggest prices can affect demand through other, non-BC channels (e.g., by signaling quality). This paper uses a lab and a field experiment to disentangle BC from non-BC effects of prices on demand. In the lab, we find that although prices positively affect stated willingness to pay, non-BC price elasticities are considerably smaller than BC price elasticities, are often statistically insignificant, and do not increase with product uncertainty. We do not detect any non-BC effects in our field experiment. (JEL C93, D12, M31)" @default.
• W2116730124 created "2016-06-24" @default.
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• W2116730124 date "2009-09-01" @default.
• W2116730124 modified "2023-10-13" @default.
• W2116730124 title "How Large Are Non-Budget-Constraint Effects of Prices on Demand?" @default.
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• W2116730124 doi "https://doi.org/10.1257/app.1.4.170" @default.
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