Pricing Corridor of Companies in Turkey on Labels of Domestic Production: An Examination of Behavioral Economics
Abstract
Recently experienced difficulties in the exchange rate pose great pressure on the economic system in Turkey.Turkey Authority is applying various methods to solve this currency printing. One of these methods is the domestic production label that is put into practice in order to influence the people's consumption motivation. This label is strong enough to cause serious pressures on the consumption motivation of the public, while at the same time making a change in the minimum and maximum price that people are willing to pay for a product. For this purpose, the change in the price corridor has been examined and it has been concluded that the maximum price and minimum price that people are willing to pay for a product increase and on the other hand this situation effect small firms are negatively and the big firms positively.
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