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Mobile web technology enables discriminatory, or personalized, pricing for many more consumer good categories than has traditionally been the case. Setting prices according to individual valuations, however, generates adverse consumer reaction unless consumers are invited to participate in the price-formation process. Consumer perceptions of price fairness are key to the sustainability of any discriminatory pricing regime. Perceptions of price fairness, in turn, are hypothesized to be shaped by "self-interested inequity aversion" in which prices tend to be regarded as unfair, and purchase probabilities fall, if others are perceived to pay a lower price, while prices tend to be regarded as more fair, and consumers more likely to purchase, if inequity is in the buyers favor. Our experimental data also shows that the implications of inequity aversion for sellers can be at least partially reversed if consumers are allowed to participate in the price-formation process by negotiating the price they pay. The primary implication of our …ndings is that, in order to be viable, any system of discriminatory pricing for consumer goods should invite consumers to have a stake in the price they pay. Such participatory pricing may provide one way out of the current trap of Hi-Lo, or promotional, pricing that neither retailers nor manufacturers regard as sustainable.

Do you remember what you like? Memory and tastings in WTP and consumer preference studies Using reactance in behavioral nudges: is the current status quo taking your choice away? The choice paradox and WTP for organic foods The relative effectiveness of habit forming behavioral interventions over time

This paper provides a selective overview of the linkages and complementary topics in behavioral economics and agricultural adoption literatures. The goal of the paper is to identify likely directions for future research at the intersection of behavioral economics and agricultural adoption. This research agenda has potential for providing valuable insight for policymakers, researchers, and stakeholders in agriculture and beyond.

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