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Cited by 384

The DOI matches its Crossref record; 19 of the 19 references it cites were found in a registry or an index.

...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay

Open access
Hossain, Tanjim, Morgan, John·2006·The B.E. Journal of Economic Analysis & Policy
DOI 10.2202/1538-0637.1429
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Abstract

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 selling matched pairs of CDs and Xbox games in a series of field experiments on eBay. In theory, the ending auction price should vary inversely with the shipping charge to leave the total price paid constant. Contrary to the theory, we find that charging a high shipping cost and starting the auction at a low opening price leads to higher numbers of bidders and higher revenues when the shipping charge is not excessive. We show that these results can be accounted for by boundedly rational bidding behavior such as loss-aversion with separate mental accounts for different attributes of the price or disregard for shipping costs.

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Metadata

Authors
Hossain, T., & Morgan, J.
Venue
The B.E. Journal of Economic Analysis & Policy
Publisher
Walter de Gruyter GmbH
Published
2006-01-30
Volume
6
Issue
2
ISSN
  • 1935-1682 (ISSN-L)
  • 2194-6108
DOI
10.2202/1538-0637.1429
OpenAlex
W2134280431
Cited by
384
References
19
FWCI
20.15
Type
journal article
Language
en
Open access
green

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CoChat. (2026). Citation check: ...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay. https://app.cochat.ai/papers/10.2202/1538-0637.1429
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Hossain, T., & Morgan, J. (2006). ...Plus Shipping and Handling: Revenue (Non) Equivalence in Field Experiments on eBay. The B.E. Journal of Economic Analysis & Policy. https://doi.org/10.2202/1538-0637.1429

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