Friday, May 3, 2013

Theatres take note: a surprising wrinkle in the "pay what you can" pricing model

A fascinating study from the University of Berkeley on "pay what you can" pricing models reveals an astounding wrinkle in the psychology of the transaction - in a nutshell, revenues rise if part of the price goes to charity. Intriguingly, the charity angle did little to attract buyers in a flat-fee situation; and a simple "pay what you want" model led to relentless low-balling.  But the "pay-what-you-want, half-goes-to-charity" model raked in more revenue on average than any other option.


Interestingly, a few companies like Moonbox are already integrating charitable giving into their productions.  Perhaps there's further synergy to explore on that front!

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