The strangest example of pay what you want pricing yet

Posted on by Guy Cookson

everlane

When Radiohead released their album In Rainbows they famously invited fans to pay what they wanted, an innovative experiment in pricing that made headlines around the world.

Marginal Revolution features an interesting – and frankly quite bizarre – case of a shoe company that is doing something similar. Although there is no free option, buyers do have the option to go with the sale price, or to select a higher price. Why would anyone choose a higher price? It’s hard to see. In cases where you are a fan of an artist, or a donor to a charity, and you want your money to reward the people you care about, it makes complete sense. But in this case? It’s got me a little stumped. Maybe it’s just a way to get free marketing (in which case I fell for it too).

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