Price setting in online markets: does IT click?

Yuriy Gorodnichenko, Viacheslav Sheremirov and Oleksandr Talavera ()

No 15-1, Working Papers from Federal Reserve Bank of Boston

Abstract: Using a unique dataset of daily U.S. and U.K. price listings and the associated number of clicks for precisely defined goods from a major shopping platform, this paper explores how prices are set in online markets, which have a number of special properties such as low search costs, low costs of monitoring competitors' prices, and low costs of nominal price adjustment. High-quality data are not only useful to estimate price rigidity and other properties of price adjustment in online commerce but also allow comparing the behavior of those properties with estimates available from brick-and-mortar stores.

Keywords: online markets; prices; price dispersion (search for similar items in EconPapers)
JEL-codes: E3 (search for similar items in EconPapers)
Pages: 60 pages
Date: 2015-01-01
New Economics Papers: this item is included in nep-com, nep-ind, nep-mac and nep-mkt
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Price Setting in Online Markets: Does IT Click? (2018)
Working Paper: Price Setting in Online Markets: Does IT Click? (2014)
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