Clicks, Discontinuities, and Firm Demand Online
"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." Copyright (c) 2009, The Author(s) Journal Compilation (c) 2009 Wiley Periodicals, Inc..
Year of publication: |
2009
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Authors: | Baye, Michael R. ; Gatti, J. Rupert J. ; Kattuman, Paul ; Morgan, John |
Published in: |
Journal of Economics & Management Strategy. - Wiley Blackwell. - Vol. 18.2009, 4, p. 935-975
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Publisher: |
Wiley Blackwell |
Saved in:
freely available
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