Rasch, Alexander; Thöne, Miriam; Wenzel, Tobias - 2018
implications for regulation. Sellers set two prices: a base price and a drip price. At first, buyers only observe the base prices … only compete in base prices and set the highest possible drip price. This makes the base price a reliable indicator for the … lowest total price, and few consumers invest in drip-price search. A comparison with Bertrand competition reveals significant …