Product variety, across‐market demand heterogeneity, and the value of online retail.

Online retail gives consumers access to an astonishing variety of products. However, the additional value created by this variety depends on the extent to which local retailers already satisfy local demand. To quantify the gains and account for local demand, we use detailed data from an online retai...

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Publicado en:RAND Journal of Economics (Wiley-Blackwell) Vol. 49; no. 4; pp. 877 - 914
Autores principales: Quan, Thomas W., Williams, Kevin R.
Formato: Artículo
Publicado: Wiley-Blackwell Winter2018
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Product variety, across‐market demand heterogeneity, and the value of online retail.
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        au:
          Quan, Thomas W.
          Williams, Kevin R.
        affil:
          University of Georgia
          Yale University
      su:
        Electronic commerce
        Consumer preferences
        Consumer behavior
        Internet stores
        Commercial products
      sug:
        subj:
          Electronic commerce
          Consumer preferences
          Consumer behavior
          Commodity Contracts Dealing
          Commodity Contracts Brokerage
          Electronic shopping and mail-order houses
          Electronic Shopping
          Internet stores
          Commercial products
      ab: Online retail gives consumers access to an astonishing variety of products. However, the additional value created by this variety depends on the extent to which local retailers already satisfy local demand. To quantify the gains and account for local demand, we use detailed data from an online retailer and propose methodology to address a common issue in such data—sparsity of local sales due to sampling and a significant number of local zeros. Our estimates indicate products face substantial demand heterogeneity across markets; as a result, we find gains from online variety that are 45% lower than previous studies.
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    language: English
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