Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/198835
Authors: 
Dertwinkel-Kalt, Markus
Köster, Mats
Sutter, Matthias
Year of Publication: 
2019
Series/Report no.: 
CESifo Working Paper No. 7475
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We examine whether shrouding surcharges or partitioning prices raises demand in online shopping where consumers have very low costs of cancelling an initiated purchase process. In a field experiment with more than 34,000 consumers, we find that consumers in the online shop of a large German cinema initiate a purchase process more often when surcharges are shrouded or indicated separately, but they also drop out more often when the overall price becomes known at the check-out. In sum, the demand distribution is independent of the price presentation. This result qualifies previous findings on the effectiveness of such pricing practices and can be rationalized through low cancellation costs.
Subjects: 
salience
inattention
shrouding
price partitioning
field experiment
JEL: 
D81
C93
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.