Shrouded Attributes and Information Suppression: Evidence from Field Experiments

@inproceedings{Hossain2005ShroudedAA,
  title={Shrouded Attributes and Information Suppression: Evidence from Field Experiments},
  author={Tanjim Hossain and John Morgan},
  year={2005}
}
The recent theoretical literature suggests that consumer myopia may lead firms to profitably suppress or shroud some attributes of the price. Empirical and experimental data also suggest that sellers gain by transferring a larger fraction of the price to the shrouded attributes. However, alternative theories, including mental accounting, could also explain these framing effects. Using field experiments, we show that the impact of this price framing on revenue vanishes when we explicitly reveal… CONTINUE READING

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