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Drip Pricing

Drip pricing is a behavioural technique used by firms. It is a form of choice architecture.

Drip pricing is a pricing strategy in which a company initially advertises a low price for a product or service, but then adds on additional fees or charges as the customer goes through the process of purchasing. These additional fees may not be immediately obvious to the customer and may only be revealed later in the process, such as during the checkout process or after the purchase has been made. Drip pricing can be confusing for customers and can make it difficult for them to compare prices and make informed purchasing decisions. Some regulatory authorities have taken action to address drip pricing, as it can be seen as deceptive or misleading to consumers.

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