(ii) hedonic options are offered at discounted but abovezero prices. Shampanier, Mazar and Ariely (2007) demonstrate that, while deciding about free products, people don’t simply subtract costs from benefits but instead perceive the benefits associated with the free products as higher since the zero-price is used as a qualitatively different price point than other non-zero prices. This theoretical rationale for differential comparative frames is similar to the one offered by past research which has compared zero-price to other nonzero price offers (Diamond and Sanyal 1990; Chandran and Morwitz 2006). These researchers find that since the monetary value of free promotions is often not explicit, “free” promotions evoke a non-market transactional mindset instead of a monetary, cost-benefit based mindset evoked by non-zero prices.