Delay discounting determines delivery fees in an e-commerce simulation: A behavioral economic perspective
Article first published online: 15 DEC 2004
© 2005 Wiley Periodicals, Inc.
Psychology & Marketing
Special Issue: Experiments in E-commerce
Volume 22, Issue 2, pages 153–161, February 2005
How to Cite
Hantula, D. A. and Bryant, K. (2005), Delay discounting determines delivery fees in an e-commerce simulation: A behavioral economic perspective. Psychol. Mark., 22: 153–161. doi: 10.1002/mar.20052
- Issue published online: 15 DEC 2004
- Article first published online: 15 DEC 2004
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.