Analysis: The Psychology of Price

Abstract

The psychology of price is supplementary to the perspectives of classical economics and thus contributes to a more comprehensive understanding of the effects of price. Economics and marketing are not solely based on the rational assumptions of homo oeconomicus, which form the basis of classical theory. Price management and its processes should not be seen exclusively from the economic point of view. Perspectives from behavioral sciences should support them as well. This chapter provides an overview of price psychology and illustrates the variety of themes within the new research field “behavioral pricing.”