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The mystery of the missing airfare

CDS director Eric Johnson discusses bait-and-switch airline fares.
Published
January 18, 2018
Publication
CBS In the News
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News Type(s)
Decision Science News
Topic(s)
Business Economics and Public Policy, Marketing

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CDS director Eric Johnson discusses the bait-and-switch airline fares, whereby they display an initial low price then switching it out later with a higher fare, that have been frustrating many consumers. "It’s not that hard to refresh Web pages to prevent having outraged consumers," he says. "While economists think a price is a price, behavioral science thinks the way the price is portrayed makes a difference," Johnson says. "The problem is that when that price is not available, people react to the pain of the increase plus the pain of the original price."

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