Pay What You Want!

The concept of "pay what you want" has gathered attention in recent times. A group of three professors from the University of California decided to see how much this pricing concept really worked, and set up their research at a roller-coaster ride in an amusement park. Another twist they added was to examine how much the revenues varied if part of the price was communicated as being donated to charity.

The results are interesting - the revenue earned was higher when customers were given the option of deciding their price (even after accounting for those who opted not to pay anything), and far higher (triple!) once the charity option was added. Read details about the entire experiment here.