Clicks, Discontinuities, and Firm Demand Online

Michael Baye, J. Rupert J. Gatti, Paul Kattuman and John Morgan

Journal of Economics & Management Strategy, 2009, vol. 18, issue 4, 935-975

Abstract: We exploit a unique dataset from a price comparison site to estimate the determinants of clicks received by online retailers. We find that a firm enjoys a 60% jump in its clicks when it offers the lowest price at the site, and failure to account for discontinuities distorts parameter estimates by nearly 100%. This discontinuity is consistent with a variety of models that have been used to rationalize online price dispersion. Finally, we show that one may use estimates of the determinants of a firm's clicks to obtain bounds on its underlying demand parameters, including standard elasticities of demand.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (55)

Downloads: (external link)
https://doi.org/10.1111/j.1530-9134.2009.00234.x

Related works:
Working Paper: Clicks, Discontinuities, and Firm Demand Online (2006)
Working Paper: Clicks, Discontinuities, and Firm Demand Online (2006)
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:bla:jemstr:v:18:y:2009:i:4:p:935-975

Ordering information: This journal article can be ordered from
http://www.blackwell ... ref=1058-6407&site=1

Access Statistics for this article

More articles in Journal of Economics & Management Strategy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().