I’d like to know what it cost SA in 5 cent redemption for glass bottles.
I’d like to know if there is a pricing model that has worked that rises exponentially as you use more than what allocated – and providing small but noticeable rewards for consumption discipline, with all the implied consumer protection.
What if there were real, yet very small, financial incentives for acting in the long term interest.
Pricing, policy and social research professionals should really be taking a look at the dynamics of different price modeling on what we know to be the crucial elements in change. Perhaps some control norms need to be reviewed.
I’ve been watching Dan Ariely’s inspired presentation on Temptation and Self-Control.
One of the challenges of human life is what’s good for us in the long term often doesn’t seem good for us right now. Dieting, for example, is not so much fun now, but good for the future; the same goes for saving money or submitting to preventive medical tests. When we face such trade offs, we often focus on the short term rather than our long-terms goals, and in the process we get ourselves into trouble.
One of the example he uses is financially based, where a (theoretical) alarm clock is connect to your bank account, and if you sleep in it deposits funds from your account into a Cause you don’t approve of.
Can this type of thinking be applied to rein in unnecessary or unconscious consumption.
Would Origin for example or another energy retailer get excited about the ability to charge more potentially for more use – and something that customers may willingly sign up for to achieve a small upside and a large downside.
Where else could exponential pricing work?
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