Are Online Markets More Integrated than Traditional Markets? Evidence from Consumer Electronics

Frank Verboven, Duch-Brown, Néstor, Andre Romahn and Lukasz Grzybowski
Authors registered in the RePEc Author Service: Néstor Duch Brown

No 15031, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Did the Internet make international markets more integrated? To address this question, we study long-term international price differences and their speed of convergence, based on a unique data base for identical goods sold in both online and traditional ``brick-and-mortar'' distribution channels, covering ten European countries. We find that long-term international price differences are closely comparable between both distribution channels. Furthermore, international price differences converge only slightly faster online than offline, and the differences in the international price differences between online and offline converge at a very fast rate. Finally, regardless of the distribution channel, long-term price differences are lower and converge faster within the same currency union. Our findings imply that online markets are currently not more integrated than traditional markets.

Keywords: International price differences; International price convergence; Difference-in-difference convergence; market integration; E-commerce (search for similar items in EconPapers)
JEL-codes: L13 L68 L86 (search for similar items in EconPapers)
Date: 2020-07
New Economics Papers: this item is included in nep-ict and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Journal Article: Are online markets more integrated than traditional markets? Evidence from consumer electronics (2021)
Working Paper: Are online markets more integrated than traditional markets? Evidence from consumer electronics (2021)
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