What is New with Free Offers?
Over at the Consumer Law and Policy Blog, there is a neat summary of an article by David Adam Friedman, On Free Offers
"Free offers can be perceived as merely harmless exaggerations or simple puffery. In fact, why wouldn't consumers want free goods and services?Rational consumers should want truly free goods and services.
However, free offers subvert rationality.
Cognitive psychology and reciprocity theory demonstrate that the power of a free offer induces consumers to behave differently, making them more likely to engage in certain transactions.
The powerful expressive function of the word "free" tactically puts consumers at a disadvantage even in the situations where the conditions of our laws and regulations are satisfied."
Hmm, that sounds pretty interesting.
If you want to take a look at the draft paper, here it is.
Tell me what you think.
