Drip Pricing When Consumers Have Limited Foresight: Evidence from Driving School Fees
نویسندگان
چکیده
منابع مشابه
Drip Pricing When Consumers Have Limited Foresight: Evidence from Driving School Fees∗
This paper empirically investigates the add-on or “drip” pricing behavior of firms in the Portuguese market for driving instruction. We present a model in which consumers purchase a base and, with some probability, an add-on product from the same firm, but are not always aware of the possible need for the add-on product. We show that a loss leader pricing strategy emerges whereby firms price th...
متن کاملDrip Pricing When Consumers Have Limited Foresight: Evidence from Driving
This paper empirically investigates the add-on or “drip” pricing behavior of firms in the Portuguese market for driving instruction. We present a model in which consumers purchase a base and, with some probability, an add-on product from the same firm, but are not always aware of the possible need for the add-on product. We show that a loss leader pricing strategy emerges whereby firms price th...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2013
ISSN: 1556-5068
DOI: 10.2139/ssrn.2220986