Using behavioural experiments to identify consumer problems in markets: Partitioned pricing practices

Sector: Behavioural and experimental economics | Behavioural Economics | Business and industry | Consumer and firm behaviour | Consumer behaviour and protection | International institutions | NGOs and consumer advocacy | Regulators and government
Published: January, 2014
Document type: Presentation 
Tagged: EC/EEA experiments quantitative analysis UK

This presentation at the OFT’s Economic Seminar series, considers how behavioural experiments can be used to identify problems consumers can have in markets and details an experiment completed for the OFT on partitioned pricing, the practice of splitting prices into parts. The study identifies that these pricing practices can reduce consumer welfare and lead to less search effort. In conclusion the presentation discusses what to look out for when designing or commissioning experiments.