This study investigates how suppliers respond to consumers exhibiting behavioral biases due to drip pricing, specifically whether suppliers will take advantage of this situation. Previous research indicates that when exposed to drip pricing, consumers can react in two opposing ways: (i) becoming less sensitive to later-revealed additional charges due to behavioral biases, potentially increasing demand; (ii) perceiving such practices as deceptive, potentially decreasing their intention to repurchase and damaging the reputation of the supplier and product. Consequently, suppliers face conflicting incentives when determining base and additional charges: the pursuit of immediate profit, achieved by using consumer behavioral biases, against enhancing their long-term reputation through price transparency. In light of this, it aims to empirically analyze which of these incentives prevails in the real market.

Focusing on Airbnb, a representative accommodation-sharing platform, where mandatory cleaning fees are not disclosed until later in the transaction process, this research utilizes new panel data to examine the evolving pricing strategies of suppliers. An analysis of major cities where Airbnb is actively operational reveals a steady relative increase in cleaning fees compared to room rates, which are base prices, from the second half of 2015 to the end of 2018. Furthermore, in analyzing the relationship between cleaning fees and host experience in New York City, controlling for accommodation and host characteristics, transaction conditions, and market situations, the study finds that more experienced hosts tend to charge separate cleaning fees and set hidden cleaning fees higher relative to base prices.

Preface
Executive Summary

Chapter 1 Introduction

Chapter 2 Understanding Drip Pricing
　Section 1 Literature Review
　Section 2 Drip Pricing on Airbnb

Chapter 3 Comparative Analysis of Pricing Trends on Airbnb
　Section 1 Data Overview
　Section 2 Comparative Analysis of Pricing Trends

Chapter 4 Empirical Analysis of Airbnb Suppliers' Pricing Strategies
　Section 1 Data Overview and Statistics
　Section 2 Empirical Analysis of Pricing Strategies
　Section 3 Examination of Alternative Possibilities

Chapter 5 Conclusion

References
Appendix
ABSTRACT