Show Summary Details

Page of

PRINTED FROM OXFORD HANDBOOKS ONLINE (www.oxfordhandbooks.com). © Oxford University Press, 2018. All Rights Reserved. Under the terms of the licence agreement, an individual user may print out a PDF of a single chapter of a title in Oxford Handbooks Online for personal use (for details see Privacy Policy and Legal Notice).

date: 22 January 2021

Abstract and Keywords

This article demonstrates how human deviations affect pricing management in both areas of consumer pricing and pricing contracts among firms. It is organized as follows. Section 20.2 discusses some important theories regarding human decision making and social preferences, including the well-known ‘prospect theory’. Section 20.3 focuses on consumer pricing and investigates how different behavioural regularities affect a firm's marketing and pricing decisions. Section 20.4 discusses critical behavioural issues that impact the design and performance of pricing contracts among firms. Section 20.5 summarizes the discussion and concludes by suggesting future research that considers behavioural issues in pricing management.

Keywords: pricing strategy, consumer pricing, pricing contracts, decision making, social preferences, prospect theory

Özalp Özer

Özalp Özer is Professor of Management at the University of Texas at Dallas. He was also a faculty member at Columbia University and Stanford University. His areas of specialization include pricing management, supply chain management, global production and distribution system design, contract and incentive design, capacity and inventory planning. His articles on these topics have appeared in leading academic journals such as Management Science and Operations Research. He has also received several teaching awards by vote of students at Columbia and Stanford. National Science Foundation and Fortune 500 companies have supported his research and teaching activities. He is an active consultant to industries such as high technology and retail. He has been invited to present his work in national and international conferences and in lectures at universities, such as MIT Sloan Business School of Management, INSEAD, and London Business School. He received his PhD and MS degrees from Columbia University.

Yanchong Zheng

Yanchong Zheng is Assistant Professor of Operations Management at the MIT Sloan School of Management. Her research focuses on studying behavioral issues in an operations context. She uses both analytical modeling and empirical methods to investigate how nonpecuniary factors impact strategic interactions between forms as well as between firms and consumers. She received her PhD at Stanford University.

Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.

Please subscribe or login to access full text content.

If you have purchased a print title that contains an access token, please see the token for information about how to register your code.

For questions on access or troubleshooting, please check our FAQs, and if you can''t find the answer there, please contact us.