Internet and the efficiency of decentralized markets: Evidence from automobiles

David Rapson and Pasquale Schiraldi ()

Economics Letters, 2013, vol. 121, issue 2, 232-235

Abstract: We estimate the effect of Internet on the volume of used car transactions. From 1997 to 2007, Internet use tripled in California, causing an increase in volume-of-trade of 7.2 %. This implies a substantial welfare gain via improved allocative efficiency.

Keywords: Transaction costs; Internet; Automobiles (search for similar items in EconPapers)
JEL-codes: D1 D8 L9 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Internet and the Efficiency of Decentralized Markets: Evidence from Automobiles (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:121:y:2013:i:2:p:232-235

DOI: 10.1016/j.econlet.2013.08.018

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