Shrouded Attributes and Information Suppression: Evidence from the Field^*

Abstract

We use field and natural experiments in online auctions to study the revenue effect of varying the level and disclosure of shipping charges. Our main findings are (1) disclosure affects revenues-for low shipping charges, a seller is better off disclosing; and (2) increasing shipping charges boosts revenues when these charges are hidden. These results are not explained by changes in the number of bidders. (c) 2010 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology..