This paper investigates the effect of Internet car referral services on dealer pricing of automobiles in California …

This paper investigates the effect of Internet car referral services on dealer pricing of automobiles in California …

This paper investigates the effect of Internet car referral services on dealer pricing of automobiles in California …

This paper addresses the question of how much the Internet lowers prices for new cars and why. Using a large dataset of … consumer pays by approximately 2.2%. This suggests that consumers who use an Internet referral service are not those who would … have obtained a low price even in the absence of the Internet. Instead, our finding is consistent with consumers choosing …

Mediating transactions through the Internet removes important cues that salespeople can use to assess a consumer …'s willingness to pay. We analyze whether dealers' difficulty in identifying consumer characteristics on the Internet and consumers … statistical race discrimination. The second part of the paper turns to the role of the Internet. Online minority buyers who use …