EconPapers    
Economics at your fingertips  
 

Consumer Price Search and Platform Design in Internet Commerce

Michael Dinerstein, Liran Einav, Jonathan Levin and Neel Sundaresan

American Economic Review, 2018, vol. 108, issue 7, 1820-59

Abstract: The platform design, the process that helps potential buyers on the internet navigate toward products they may purchase, plays a critical role in reducing search frictions and determining market outcomes. We study a key trade-off associated with two important roles of efficient platform design: guiding consumers to their most desired product while also strengthening seller incentives to lower prices. We use simple theory to illustrate this, and then combine detailed browsing data from eBay and an equilibrium model of consumer search and price competition to quantitatively assess this trade-off in the particular context of a change in eBay's marketplace design.

JEL-codes: D12 D44 D83 L81 L86 (search for similar items in EconPapers)
Date: 2018
Note: DOI: 10.1257/aer.20171218
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed

Downloads: (external link)
https://www.aeaweb.org/doi/10.1257/aer.20171218 (application/pdf)
https://www.aeaweb.org/content/file?id=7376 (application/zip)
https://www.aeaweb.org/articles/attachments?retrie ... 76XHUz4IKLxjmXu-PBnj (application/pdf)
https://www.aeaweb.org/articles/attachments?retrie ... QBeAeNerQzhaj_8amGoa (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
Working Paper: Consumer Price Search and Platform Design in Internet Commerce (2014) Downloads
Working Paper: Consumer Price Search and Platform Design in Internet Commerce (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aea:aecrev:v:108:y:2018:i:7:p:1820-59

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

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 ().

 
Page updated 2021-10-03
Handle: RePEc:aea:aecrev:v:108:y:2018:i:7:p:1820-59