Among the practices pertaining to the exploitation of consumers’ behavioral bias in product pricing and information disclosure, this study analyzes drip pricing; considered to be the most damaging to consumers. The negative effects have been confirmed in several preceding literature and analyses which show that drip pricing can impel consumers to not only to search and compare less but also to respond numbly to additional charges, subsequently inducing an increased demand for the product. Empirical analysis of Airbnb data reaffirms the existence of consumers’ behavioral bias and also indicates that suppliers may have stronger incentive to take advantage of such bias as they attain more knowledge of it. Specifically, analysis of the drip-pricing practices of Airbnbs, in which obligatory extra fees for cleaning and additional guests are presented after the accommodation fees, revealed that the occupancy rate responds more numbly to the extra fees than to the accommodation fee and that hosts with more experience and know-how have a tendency to apply separate and higher cleaning fees. Moreover, an international comparison of the regulations for and enforcement of price disclosure showed that although all countries have explicit bans on drip pricing in the aviation industry, there are no specific rules for other industries, except for Australia, and instead, regulatory provisions are enforced on certain actions, which could mislead consumers. To that end, like major countries, Korea should make further efforts to establish and enforce regulations to clarify when and how the service provider discloses the total price where all obligatory fees are included.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Economic Perspectives on Consumer Behavioral Bias
　Section 1 Overview of Consumer Behavioral Bias
　Section 2 Literature Review on Drip Pricing
　Section 3 Conclusion

Chapter 3 Empirical Analysis of Drip Pricing
　Section 1 Overview of Empirical Analysis
　Section 2 Data and Preliminary Analysis
　Section 3 Impact of Drip Pricing on Demand
　Section 4 Consumer Behavioral Bias and Supplier Incentives
　Section 5 Conclusion

Chapter 4 Policy Trends in Price Information Disclosure
　Section 1 Price Disclosure Regulations and Enforcement in Major Countries
　Section 2 Price Disclosure Regulations and Enforcement in Korea
　Section 3 Conclusion

Chapter 5 Conclusion

References
Appendix
ABSTRACT