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Hidden Fee

‘Hidden Fees’ in Online Ticketing

Berkeley Haas Prof. Steven Tadelis conducted a huge experiment with StubHub and found out the reason behind last-minute hidden fees before checkout.

This massive field experiment concluded that “drip pricing” (where additional hidden fees are only disclosed when customers are ready to confirm their purchases) has resulted in people spending approximately 21% more than they would without the last minute fees.

Through the study, the researchers aimed to better understand how “drip pricing” affects the quantity and types of ticket purchases through a large-scale, real-world randomized experiment.

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