Which rent discount offer is more appealing?
August 15, 2011 3:05 PM Subscribe
Behavioral economics: which rent discount option is more appealing?
posted by harwons to Science & Nature (27 answers total) 2 users marked this as a favorite
Are there any studies on the effectiveness of rent discounts?
Say, a builder is building a property that will be ready in 1 to 2 years, and they want to attract renters to commit to a rental contract now. The rent price isn't known yet, but would be in-line with prices in the area. If the renter commits, they'd get a discount.
Which of these would be more effective, and why (studies?)
* first month free
* 50% off for 2 months
* 33% off for 3 months
* 16% off for 6 months
The monetary discount would the same, but I'm interested in the psychological appeal of one offer versus the others, having in mind the 1-2 years time frame in which it would apply, and the 1-6 months over which it would apply (which may make research on Hyperbolic discounting