Market Entry in E-Commerce

Maximilian Kasy () and Michael Kummer
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Maximilian Kasy: UC-Berkeley, Department of Economics

No 08-23, Working Papers from NET Institute

Abstract: We analyze the behavior of start-ups in e-commerce, namely on Austria's leading price-comparison-site, a multi-product environment with almost complete information. We use weekly panel data on price-quotes of digicams, Audio/HiFi-equipment and hardware. We furthermore use advanced estimation methods, which, having only recently been introduced to IO, aim at using a minimum of modeling assumptions. Thus, being able to trace the behavior of roughly 350 start-up companies and 600 incumbents, we investigate whether start-ups have a different composition of product-portfolios, charge lower prices and offer fewer goods.

Keywords: nonparametric estimation; panel data; start-up; entry; e-commerce; strategic behavior; pricing (search for similar items in EconPapers)
JEL-codes: C14 C23 L11 L14 L81 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008-09, Revised 2008-09
New Economics Papers: this item is included in nep-com, nep-ent, nep-ict, nep-ind and nep-mic
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Persistent link: https://EconPapers.repec.org/RePEc:net:wpaper:0823

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