What price do you ask for the "Extra One"?: A social value orientation perspective

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Keywords:
social value orientation, asking price, reference price, market price, cooperative behavior, loss
Abstract

The concept of social value orientation was used to explore individuals' decisions in asking price when they had an "extra one" that someone wanted to buy. Results from an experimental study indicated that competitors' asking price was higher than those of individualists, who in turn asked higher prices than did prosocials. Regardless of the social value orientation, participants charged a significantly lower price for the "extra one" if the buyer was a friend rather than a stranger. In addition, for prosocials, market price was not an important consideration when they decided the asking price, and they exhibited cooperative behavior only under the situation of no loss.

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Published
2007-02-01
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Articles
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