Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/56912 
Authors: 
Year of Publication: 
2010
Series/Report no.: 
Jena Economic Research Papers No. 2010,081
Publisher: 
Friedrich Schiller University Jena and Max Planck Institute of Economics, Jena
Abstract: 
Customers at the online music label Magnatune can pay what they want for albums, as long as the payment is within a given price range ($5-$18). Magnatune recommends to pay $8, and on average customers paid $8.20 (Regner and Barria, 2009). We ran an online survey and collected responses from 227 frequent Magnatune customers to gain insights about the underlying motivations to pay more than necessary. We control for individual response- and sample selection-bias, and find that reciprocity and guilt appear to be the major drivers for generous voluntary payments. Being inclined to follow social norms is a positive determinant for payments around the recommended price.
Subjects: 
social preferences
other-regarding behaviour
music industry
reciprocity
guilt
social norms
altruism
fairness
social-image concerns
survey
JEL: 
C83
D03
D82
M21
L82
L86
Document Type: 
Working Paper

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