Track 4
Behavioral Economics & Fairness
How psychology shapes pricing: reference dependence, loss aversion, framing effects, fairness norms, and the economics of price regulation.
Topics
The Psychology of Pricing
Fairness, loss aversion, and reference prices
Explore how reference prices, loss aversion, and framing effects shape customer responses, and see why the same price change can be accepted or rejected depending on context.
How You Present the Price
Anchoring, decoys, and charm pricing
Explore how anchoring, charm pricing, decoy effects, and partitioned pricing shift willingness-to-pay, and run side-by-side frame comparisons.
Price Fairness & Regulation
Anti-gouging laws, price controls, and welfare
Impose price ceilings and anti-gouging constraints on markets with demand shocks, measure welfare effects and shortages, and explore when fairness norms align with economic efficiency.