NDLI: Deceptive Products on Platforms

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Deceptive Products on Platforms

Content Provider	Scilit
Author	Johnen, Johannes Somogyi, Robert
Copyright Year	2019
Description	Journal: SSRN Electronic Journal On many online platforms, sellers offer products with additional fees and features. Platforms often deliberately shroud these fees from consumers. Examples are shipping fees, luggage fees on flight-aggregator websites, or resort fees and upgrades on hotel booking platforms. We explore the incentives of two-sided platforms to disclose additional fees and design a transparent marketplace when consumers might naively ignore shrouded additional fees. First, we find that platforms have stronger incentives to shroud additional fees than sellers in the absence of platforms. This result holds for monopoly platforms and in some competitive settings. Second, competition might induce platforms to regulate additional fees, which benefits consumers. We discuss connections to frequent practices like drip pricing, and platforms like Amazon or eBay regulating shipping fees.
Related Links	http://www.netinst.org/Somogyi_19-13.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3468458
ISSN	10914358
e-ISSN	15565068
DOI	10.2139/ssrn.3468458
Journal	SSRN Electronic Journal
Language	English
Publisher	Elsevier BV
Publisher Date	2019-09-30
Access Restriction	Open
Subject Keyword	Journal: SSRN Electronic Journal Information and Library Science Additional Fees Online Platforms Shroud Additional
Content Type	Text
Resource Type	Article
Subject	Public Health, Environmental and Occupational Health Psychiatry and Mental Health

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