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Price comparison websites, where consumers can compare prices at a search cost that is close to zero, have become … the Swedish price comparison website PriceSpy on prices and price dispersion. We find that increased use by consumers … approximately 2.9 billion SEK. Reduced prices due to increased use of the price comparison website thus resulted in total potential …
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This paper studies unshrouding decisions in a framework similar to Gabaix and Laibson (2006), but considers an alternative unshrouding mechanism where the impact of advertising add-on information depends on the number of unshrouding firms. We show that shrouding becomes less prevalent as the...
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