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Price comparison websites, where consumers can compare prices at a search cost that is close to zero, have become … the Swedish price comparison website PriceSpy on prices and price dispersion. We find that increased use by consumers … approximately 2.9 billion SEK. Reduced prices due to increased use of the price comparison website thus resulted in total potential …
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This paper studies the role of imperfect information in explaining price dispersion. We use a new panel dataset on the … U.S. retail gasoline industry, and propose a new test of temporal price dispersion to establish the importance of … consumer search. We show that price rankings vary significantly over time; however, they are more stable among stations at the …
Persistent link: https://www.econbiz.de/10012714188
This paper identifies patterns of cross-sectional and temporal price dispersion-in the Spanish online grocery retail …. Our results show that price dispersion is still present (albeit to a lesser extent) even after controlling for chain … using price data while accounting for vertical product differentiation. The analysis suggests that the extent of search is …
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profitable for the merging firms. If search costs are relatively high instead, a merger causes a fall in average price and this …
Persistent link: https://www.econbiz.de/10011372993
Despite the mixed empirical evidence, many economists stillhold to the view that Internet will promote competition betweenfirms,thereby lowering prices and increasing economic welfare. This paperpresents a search model that provides a different view. We analyzethemarket for a homogeneous good...
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