We analyze price dispersion using panel data from a large price comparison site. We use past pricing behavior to instrument for potential endogeneity that might result from the selection of firms to certain product markets. We find that greater price adjustment costs result in greater price...

This research examines consumers' willingness to pay in an online environment. Specifically, I compare two price-elicitation strategies: price generation (i.e., quot;name your pricequot;) and price selection i.e., quot;select your pricequot;). Contrary to the common assumption that naming a...

Bitcoin is traded in a number of exchanges, and there is a large and time-varying price dispersion among them. We identify the sources of price dispersion using a standard time-varying vector auto-regression model with stochastic volatility. Using weekly data over the past 3 years, we find that...

Most previous studies in price dispersion literature consider only the dispersion of post price. We build a model combining price dispersion with the associated sales, incorporating the dynamic update of online reputation in an Internet market. We identify buyer informativeness, which measures...

The Internet has changed the nature of doing business as well as the nature of competition in many industries. Consumers are more empowered than ever with valuable information such as prices, products, and store ratings. Because of this, some researchers even predicted, during the early stage of...

Price dispersion is an important indicator of market efficiency. Internet-based electronic markets have the potential to reduce transaction and search costs, thereby creating more efficient, “frictionless,” markets as predicted by theories in information economics. However, prior work has...

Online price comparison sites (shopbots) like PriceGrabber.com are the most powerful tools for consumers to easily compare prices and find offers for desired products. Besides providing distributions of actual prices in price comparison tables, shopbots like NexTag.com have recently introduced...