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Why Charge High When Your Abilities Are Limited? The Effect of Implicit Belief on Willingness to Pay in Participative Pricing

Lookup NU author(s): Dr Tam DinhORCiD

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This work is licensed under a Creative Commons Attribution 4.0 International License (CC BY 4.0).

Abstract

© 2026 The Author(s). Published with license by Taylor & Francis Group, LLC.As AI-driven, or algorithmic, pricing often favors companies more than consumers, it is meaningful to examine how such a strategy may benefit the latter in a participative pricing mechanism. The current research explores this idea by investigating the interaction between implicit belief in AI and AI-recommended price on consumers’ willingness to pay. The study employed a between-subject experimental design, 2 implicit belief (entity vs. incremental theorist) x 2 AI-recommended price (high vs. low), in both the pilot test (N = 100) and the main test (N = 396). To increase the robustness of the findings, demographic factors and the attitude toward AI were controlled for. Across both studies, when the AI-recommended price was high (vs. low), entity theorists demonstrated a lower willingness to pay compared to incremental theorists. As one of the few experiments manipulating algorithmic pricing, the results made a significant contribution to the literature, and while studies on human-AI interactions are ample, those on consumer communication with AI-recommended price are scant. Managerially, marketers may gain nuanced insights into when and who may be more negatively affected by AI. Employing both implicit belief and cognitive dissonance theories, the study helps pave the way for further research on AI-driven pricing.

Publication metadata

Author(s): Dinh TD

Publication type: Article

Publication status: Published

Journal: Journal of Global Marketing

Year: 2026

Pages: epub ahead of print

Online publication date: 28/04/2026

Acceptance date: 02/04/2026

Date deposited: 01/06/2026

ISSN (print): 0891-1762

ISSN (electronic): 1528-6975

Publisher: Routledge

URL: https://doi.org/10.1080/08911762.2026.2664734

DOI: 10.1080/08911762.2026.2664734

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