Market Structure and Market Performance in E-Commerce

Hackl, Franz; Kummer, Michael E.; Winter-Ebmer, RudolfORCID: and Zulehner, Christine (June 2012) Market Structure and Market Performance in E-Commerce. Former Series > Working Paper Series > IHS Economics Series 287


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Abstract: We investigate the causal effect of market structure on market performance in the consumer electronics. We combine data from Austria's largest online site for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. We observe input prices of firms, and all their moves in the entry and the pricing game over the whole product lifecycle. Using this information for 70 digital cameras, we generate instrumental variables for thenumber of firms in the market based on the shops' entry decisions on other product markets in the past. We find that instrumenting is particularly important for estimating the effect of competition on the markup of the price leader.;

Item Type: IHS Series
Keywords: 'Retailing' 'Product lifecycle' 'Market structure' 'Market performance' 'Markup' 'Price dispersion'
Classification Codes (e.g. JEL): L11, L13, L81, D43
Date Deposited: 26 Sep 2014 10:39
Last Modified: 23 Apr 2024 06:00
ISBN: 1605-7996

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