Market Structure and Market Performance in E-Commerce

Rudolf Winter-Ebmer, Christine Zulehner, Franz Hackl () and Michael E Kummer

No 9001, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We investigate the causal effect of market structure on market performance in the consumer electronics. We combine data from Austria's largest online site for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. We observe input prices of firms, and all their moves in the entry and the pricing game over the whole product lifecycle. Using this information for 70 digital cameras, we generate instrumental variables for the number of firms in the market based on the shops' entry decisions on other product markets in the past. We find that instrumenting is particularly important for estimating the effect of competition on the markup of the price leader.

Keywords: Market performance; Market structure; Markup; Price dispersion; Product lifecycle; Retailing (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 L81 (search for similar items in EconPapers)
Date: 2012-06
New Economics Papers: this item is included in nep-bec, nep-com and nep-ind
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Related works:
Journal Article: Market structure and market performance in E-commerce (2014)
Working Paper: Market Structure and Market Performance in E-Commerce (2014)
Working Paper: Market Structure and Market Performance in E-Commerce (2012)
Working Paper: Market Structure and Market Performance in E-Commerce (2012)
Working Paper: Market structure and market performance in e-commerce (2012)
Working Paper: Market structure and market performance in e-commerce (2011)
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