Prof. Xavier Gabaix's research on shrouded prices
– September 14, 2012
Excerpt from Financial Times -- "This kind of puzzle – call it the hotel mini-bar problem – was explored a few years ago by economists Xavier Gabaix and David Laibson. The question is, is there some more transparent pricing scheme that aims for the same level of profitability as the companies which prefer to spring surprises on their customers? The answer is: no."