Are online markets more integrated than traditional markets? Evidence from consumer electronics

Néstor Duch-Brown, Lukasz Grzybowski, Andre Romahn and Frank Verboven
Authors registered in the RePEc Author Service: Néstor Duch Brown

Journal of International Economics, 2021, vol. 131, issue C

Abstract: Did the Internet make international markets more integrated? To address this question, we study long-term international price differences and their speed of convergence, based on a unique data base for identical goods sold in both online and traditional “brick-and-mortar” distribution channels, covering ten European countries. We find that long-term international price differences are closely comparable between both distribution channels. Furthermore, international price differences converge only slightly faster online than offline, and the differences in the international price differences between online and offline converge at a very fast rate. Finally, regardless of the distribution channel, long-term price differences are lower and converge faster within the same currency union. Our findings imply that online markets are currently not more integrated than traditional markets.

Keywords: International price differences; International price convergence; Difference-in-difference convergence; Market integration; E-commerce (search for similar items in EconPapers)
JEL-codes: L13 L68 L86 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Are online markets more integrated than traditional markets? Evidence from consumer electronics (2021)
Working Paper: Are Online Markets More Integrated than Traditional Markets? Evidence from Consumer Electronics (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:131:y:2021:i:c:s0022199621000532

DOI: 10.1016/j.jinteco.2021.103476

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