An analysis of nine-ending pricing

Prices ending in 9 are ubiquitous. In this paper I first develop a theoretical model of the effect of such prices on sales and review the empirical literature on the topic. Then I use a data set from an online experiment run by Lau (2000) to conduct an empirical study of the effect. Analysis with a logit model indicates that products with 9-ending prices are more likely to be chosen than others but a high fraction of 9-endings decreases the effect.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2004

Author dc:creator

• Wu, Wei, 1973-

Advisor dc:contributor.advisor

• John D.C. Little.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

en_US

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/28682

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/28682