“Drip pricing” occurs where the seller first appears to describe the full price of an offering, however after the transaction has commenced, the buyer discovers that the seller requires a second payment. Upon confronting the later required payment, the cost of unwinding the entirety of the...

This paper theoretically analyzes the role of reference prices on competition and welfare in a context of a circular city model with free entry and reference prices, in which paying market prices above a reference negatively affects the utility of consumers. Agents interact in a three-stage...

This article provides an empirical evaluation of a recent and important exercise in regulatory price setting in the United States. The 1996 Telecommunications Act required incumbent local phone companies to sell components of their network to rival firms at regulated prices, and the prices for...