I suppose as a buyer many have been on the receiving end of "call for price" price discrimination or one of its less unpleasantly sounding synonyms. Now it's generally known that the average Joe hates negotiating at least for cars... So how do you decide as a seller whether to sell something the call-for-price-way or (still using cars as example) the Costco way i.e. with fixed/list prices?
I suppose there's some kind of market research that takes into account the psychological aversion [for protracted negotiation] of the prospective buyers, but I don't know much about that. Is there any research on this topic, i.e. what are the things to consider in deciding on list price vs "call for price"? And is there empirical validation for such decision schemes if they exist?
Yeah, the traditional economic theory simply says "If you can discriminate, it is profitable to do so". But that seems to ignore any behavioral economics aspects.