Haan, Marco; Heijnen, Pim; Obradovits, Martin - 2021
This paper studies the competitive role of list prices. We argue that such prices are often more salient than actual … consumers observe no prices, some observe all prices, and some only observe list prices. We show that if the latter partially … informed consumers use a simple rule of thumb, the use of list prices leads to lower retail prices on average. This effect is …