This paper investigates the implications of vertical integration with private labels in the marketplace model opposed to the classic wholesale model. Differently from classic retailers, on a marketplace firms set end-consumer prices and the intermediary collects fees. When introducing a...

Online shopping has been expanding rapidly in the past decade. At the same time, recent studies suggest that prices of physical stores are becoming more flexible. What are the effects of online competition on the pricing behavior of traditional retailers? I start by providing empirical evidence...