Told vs. Old: A Textbook Experiment Evaluating Price Beliefs and Consumer Search

Abstract

We conduct a field experiment with 2,449 consumers in a college textbook market, treating a subset of participants with price information for assigned textbooks at online and offline retailers. We investigate how incomplete information affects search and purchase behavior across different levels of consumer experience. Our findings reveal three key insights: (1) Price information increases online search and purchases; (2) Price information eliminates experience-based disparities; and (3) Inexperienced consumers become more uncertain about general online textbook prices after receiving specific price information. We highlight the critical role of information in shaping consumer behavior in markets, especially for inexperienced consumers.

Keywords: JEL Codes: D83, D12, L15, I23, D82 Search Behavior, Field Experiment, Consumer Experience, Online Retail

JEL Classification: D83