Pricing · Laboratory experiment in which sellers set a base/headline price and a later drip price; buyers initially saw only the base price and then encountered the additional price, allowing comparison of transparency/regulatory conditions and buyer decisions.
Drip Pricing and Its Regulation: Experimental Evidence
Journal of Economic Behavior & Organization · 2021
Summary
The experiment tests whether drip pricing changes buyer behavior and seller pricing relative to more transparent presentation; it provides causal evidence on the behavioral and regulatory consequences of separating headline and add-on prices.
For your marketing
Possible founder application
Use this paper as evidence about drip pricing and its regulation: experimental evidence in the stated context; compare its population, treatment and outcome with your own decision.
Reported result
What the study found
The experiment tests whether drip pricing changes buyer behavior and seller pricing relative to more transparent presentation; it provides causal evidence on the behavioral and regulatory consequences of separating headline and add-on prices.
Research question
What the authors investigated
What does drip pricing and its regulation: experimental evidence show about customer behavior or marketing outcomes?
Design
Laboratory experiment in which sellers set a base/headline price and a later drip price; buyers initially saw only the base price and then encountered the additional price, allowing comparison of transparency/regulatory conditions and buyer decisions.
Sample and setting
Experimental buyers and sellers in a controlled pricing market; the publisher abstract describes the two-price seller treatment and buyers' tentative decisions, but the accessible page does not report the participant count.
Scope and transfer
Limitations to keep in view
Inference from the laboratory design: induced two-stage prices and buyer/seller roles may not capture all information, search, and enforcement conditions in real markets; external validity is therefore not established by the experiment alone. Full-text methods and correction history were not independently checked.
Research sources
Candidate study metadata and reported evidence were cross-checked against a direct publisher-page retrieval; the full article was not independently reviewed.