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Mark A.M. Kramer

SSRN-Search, Obfuscation, and Price Elasticities on the Internet by Glenn Ellison, Sara... - 0 views

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    Abstract: "We examine the competition between a group of Internet retailers that operate in an environment where a price search engine plays a dominant role. We show that for some products in this environment, the easy price search makes demand tremendously price-sensitive. Retailers, though, engage in obfuscation - practices that frustrate consumer search or make it less damaging to firms - resulting in much less price sensitivity on some other products. We discuss several models of obfuscation and examine its effects on demand and markups empirically. Observed markups are adequate to allow efficient online retailers to survive."
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Mark A.M. Kramer

Business & Technology | A Kirkland cafe with no prices | Seattle Times Newspaper - 0 views

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    You read that right: No prices. Customers pay what and when they like, or not at all - it makes no difference to the cafe employees, who are instructed not to peek when people put money in the metal lock box.
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