Amazon.com changed its prices based on customers' geographic location to determine how price changes affect sales. This is an example of a:
A) field experiment.
B) permit study.
C) natural experiment.
D) Coase experiment.

Question

Quizplus · Accepted Answer

Amazon.com's practice of changing prices based on customers' geographic location to observe the effect on sales is an example of a field experiment. This is because it involves manipulating variables (in this case, prices) in a natural setting outside of a laboratory to study the outcome (sales changes).

Amazoncom Changed Its Prices Based on Customers' Geographic Location to Determine