Price Setting in Online Markets: Basic Facts, International Comparisons, and Cross-Border Integration
Yuriy Gorodnichenko and
American Economic Review, 2017, vol. 107, issue 1, 249-82
We document basic facts about prices in online markets in the United States and Canada, which is a rapidly growing segment of the retail sector. Relative to prices in regular stores, prices in online markets are more flexible and exhibit stronger pass-through (60-75 percent) and faster convergence (half-life less than two months) in response to movements of the nominal exchange rate. Multiple margins of adjustment are active in the process of responding to nominal exchange rate shocks. Properties of goods, sellers, and markets are systematically related to pass-through and the speed of price adjustment for international price differentials.
JEL-codes: F31 F41 L11 L81 (search for similar items in EconPapers)
Note: DOI: 10.1257/aer.20141127
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
https://www.aeaweb.org/articles/attachments?retrie ... sAZX-dn_SzPxgpkqBT-o (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... hjk1yT2pIKSX0chIoS0E (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.
Working Paper: Price setting in online markets: Basic facts, international comparisons, and cross-border integration (2015)
Working Paper: Price Setting in Online Markets: Basic Facts, International Comparisons, and Cross-border Integration (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:107:y:2017:i:1:p:249-82
Ordering information: This journal article can be ordered from
Access Statistics for this article
American Economic Review is currently edited by Esther Duflo
More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().