Price Matching in Online Retail

Anna Bottasso, Simone Robbiano and Paolo Marocco

No 1351, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: We analyze a sample of consumer-electronics products sold by the US NewEgg online-retailer to study the impact of Price Matching Guarantees (PMGs) policies on prices. By applying aDifference-in-Differences approach,we find that prices of the policy-adopting retailer increase by 4.7% during the policy validity period and up to five days after the treatment, while those of the major non-adopting competitor are not affected. Results are mainly driven by highlyrated, visible and expensive products, while the policy does not affect low-rated, less visible and cheaper ones. Overall findings are consistent with the hypothesis that PMGs act as price discrimination tools.

Keywords: Price Matching Guarantees; Online Retailing; User Generated Contents; Difference-in-Differences; Price Discrimination; Collusion; Signalling (search for similar items in EconPapers)
JEL-codes: L11 L13 L15 L81 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-com, nep-ind, nep-pay and nep-reg
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:1351

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