An analysis of nine-ending pricing

Author(s)
Wu, Wei, 1973-
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Alternative title
Analysis of 9-ending pricing
Other Contributors
Sloan School of Management.
Advisor
John D.C. Little.
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Abstract
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.
Description
Thesis (S.M.)--Massachusetts Institute of Technology, Sloan School of Management, 2004.
 
Includes bibliographical references (leaves 63-66).
 
Date issued
2004
URI
http://hdl.handle.net/1721.1/28682
Department
Sloan School of Management
Publisher
Massachusetts Institute of Technology
Keywords
Sloan School of Management.
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