Hossain, Tanjim; Morgan, John - In: Advances in Economic Analysis & Policy 6 (2006) 2, pp. 1429-1429
Many firms divide the price a consumer pays for a good into two pieces---the price for the item itself and the price for shipping and handling. With fully rational customers, the exact division between the two prices is irrelevant---only the total price matters. We test this hypothesis by...