Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/215746
Authors: 
Dertwinkel-Kalt, Markus
Köster, Mats
Sutter, Matthias
Year of Publication: 
2020
Series/Report no.: 
DICE Discussion Paper 333
Abstract: 
We examine whether shrouding or partitioning of a surcharge raises demand in online shopping. In a field experiment with more than 34,000 consumers, we find that consumers in the online shop of a cinema initiate a purchase process for a 3D movie more often when the 3D surcharge is shrouded, but they also drop out more often when the overall price is shown at the check-out. In sum, the demand distribution is independent of the price presentation. This result qualifies previous findings on the effectiveness of shrouding surcharges and can be rationalized through low cancellation costs.
Subjects: 
Salience
Inattention
Shrouding
Price partitioning
Field experiment
JEL: 
D81
C93
ISBN: 
978-3-86304-332-2
Document Type: 
Working Paper

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