Bitcoin-denominated prices can reduce preference for vice products

【Author】 Park, Joowon; Banker, Sachin

【Source】MARKETING LETTERS

【影响因子】3.426

【Abstract】The growing popularity of bitcoin presents novel research questions related to pricing. Unlike cheques or cards which merely function as alternative methods of payment to cash, bitcoin could also work as an alternative way to denominate prices. In the current research, we examine the effect of price denomination in bitcoin (i.e., setting the price of an item in bitcoin terms rather than in dollars) on purchasing behavior. Specifically, we explore whether denominating prices in bitcoin terms may reduce purchase of non-essential vice items. In a simulated grocery shopping study, we demonstrate that when prices are denominated in bitcoin rather than in dollars, people are less inclined to purchase unhealthy vice food products while equally inclined to purchase virtue food products even when the method of payment accepted by the business is held constant. We further show that the effect stems from participants' anticipation of greater regret.

【Keywords】Bitcoin; Cryptocurrency; Pricing; Method of payment

【发表时间】

【收录时间】2022-11-14

【文献类型】实证数据

【主题类别】

区块链治理-市场治理-市场分析