ABSTRACT
Imagine that you are getting ready to launch a new product and need to determine a price. What factors should you consider and how should you combine these factors in determining a nal price? One standard approach to pricing prescribes that the manufacturer should take into account the demand curve, willingness to pay, economic value and costs of the products (Dolan & Simon, 1996). e thrust of much of the pricing work in marketing centers on the act of determining a price for the product or service, and makes the implicit assumption of description invariance (i.e., people are rational so that the manner in which the price is framed should not in uence choice; Tversky & Kahneman, 1986).
