Replication data for: How Large Are Non-Budget-Constraint Effects of Prices on Demand?
- Heffetz, Ori
- Shayo, Moses
AbstractElementary 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)
Is supplement to
DOI: 10.1257/app.1.4.170 (Text)
Heffetz, Ori, and Moses Shayo. “How Large Are Non-Budget-Constraint Effects of Prices on Demand?” American Economic Journal: Applied Economics 1, no. 4 (September 2009): 170–99. https://doi.org/10.1257/app.1.4.170.
- ID: 10.1257/app.1.4.170 (DOI)
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-10-12