Empirical search cost estimates tend to increase in the size of the transaction, even ifsearch can be done conveniently online. To assess this pattern systematically, we conductan online search experiment in which we manipulate the price scale while keeping thephysical search effort for each...

In this paper, we estimate a differentiated products demand model to ask three questions regarding the introduction of e-commerce. First, we ask whether the online distribution channel has increased total sales, or only diverted sales from traditional channels. We find that there is some market...

Empirical search cost estimates tend to increase in the size of the transaction, even if search can be done conveniently online. To assess this pattern systematically, we conduct an online search experiment in which we manipulate the price scale while keeping the physical search effort for each...