competition. Where firms have some market power, as in the market for information goods, we expect discriminatory pricing to … become the norm. Apart from posted prices, the internet has extended the use of auctions, even to relatively low-value goods … well as economic efficiency, and may emerge as the principal pricing method for a large number of goods and services. …

Recent cross country panel data studies find a positive impact of internet use on economic growth and a positive impact … of internet use on trade. The present study challenges the first finding by showing that internet use does not explain … highly correlated with internet use and the findings in the literature that internet use causes trade is confirmed here …