I just stubled upon this "study":
http://www.auctioninsights.info/study-shows-bidders-like-shipping-handling-charges.html
This section is interesting:
Hossain and Morgan state, “Contrary to that theory, we find that charging a high shipping cost and starting the auction at a low opening price leads to higher revenues when the shipping charge is not excessive.” They assert that the bidders either disregard (or overlook) the shipping cost when determining the value of a commodity, or create “separate mental accounts” for what they are willing to pay for shipping & handling and for the cost of the item itself. This concept basically says that the bidder is willing to keep the two expenses separate in his or her mind, and as long as both charges are reasonably low, he or she is willing to pay - despite the fact that combined, the expense is greater than the single charge for the item with free shipping.
