Pain of paying? — A metaphor gone literal: Evidence from neural and behavioral science Hilke Plassmann INSEAD, Fontainebleau How do individuals consider the price of a product when making purchase decisions? Standard economic theories assume an analytical process in which individuals consider the opportunity costs of the purchase. However, recent behavioral economic theories of purchases suggest an additional hedonic process underlying the payment of the price: an immediate displeasure or “pain of paying”. Thus, when deciding whether to purchase a product, individuals consider the potential pain of paying its price. We set out to find empirical support for this theoretical metaphor in three incentive-compatible experiments. First, we conducted a brain imaging study, which suggests the involvement of a higher-order, affective pain- experience. Building on this result, we next facilitated the perception of affective pain through conceptual priming, which decreased subjects’ willingness to pay (WTP). Finally, misattributions of pain perception to placebo drugs increased versus decreased subjects’ WTP in case of affective pain enhancers versus pain relievers, respectively. In contrast, manipulations of somatosensory pain perceptions did not alter the WTP in the latter two experiments. Thus, the “pain of paying” is not just a metaphor; it is an actual affective experience that guides purchasing decisions.