Seminario Micro

Pedro Rey Biel

U. Autònoma de Barcelona


Seminar 3 – 14:30


We take a new look at the relationship between utility derived from a product and willingness to pay by doing experiments with an experience good, theatre plays, in which audience members use a pay-what-you-want system for their tickets. Using several satisfaction measures, including ex-ante and ex-post questionnaires and facial recognition software, we find that, after controlling for observables, payment increases with the degree in which a product actually meets individual expectations. This gives support to the presence of Koszegi and Rabin (2006) expectation based preferences

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