Delay discounting determines delivery fees in an e-commerce simulation: A behavioral economic perspective

Participants ordered music CDs and bargained for delivery time and fees in a simulated on‐line store. After ordering a CD, participants engaged in a delivery‐fee bargaining task that was embedded in a psychophysical up–down staircase titration procedure in which options of next‐day delivery for a fe...

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Bibliographic Details
Published in:Psychology & marketing 2005-02, Vol.22 (2), p.153-161
Main Authors: Hantula, Donald A., Bryant, Kimberly
Format: Article
Language:English
Subjects:
Alliances
Economic theory
Electronic commerce
Fees & charges
Gift cards & certificates
Internet
Music
Purchasing
Realism
Shopping
Simulation
Studies
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Summary:Participants ordered music CDs and bargained for delivery time and fees in a simulated on‐line store. After ordering a CD, participants engaged in a delivery‐fee bargaining task that was embedded in a psychophysical up–down staircase titration procedure in which options of next‐day delivery for a fee and delayed free delivery were made more or less attractive based on previous choices. A hyperbolic function derived from the matching law fit the data. These results are consistent with a behavioral‐economic account of intertemporal choice in which delivery fees are seen as a swap of money for time. © 2005 Wiley Periodicals, Inc.
ISSN:0742-6046
1520-6793
DOI:10.1002/mar.20052