Zettelmeyer, Florian; Morton, Fiona M. Scott; … - School of Management, Yale University - 2001
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 …