Price matching in online retail.

We analyze a sample of consumer‐electronics products sold by the US NewEgg online‐retailer to study the impact of price‐matching guarantees (PMGs) on prices. By applying a difference‐in‐differences approach, we find that the price of the policy‐adopting retailer increases by 4.7% during the policy v...

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Publicado en:Economic Inquiry Vol. 63; no. 1; pp. 206 - 236
Autores principales: Bottasso, Anna, Robbiano, Simone, Marocco, Paolo
Formato: Artículo
Publicado: Wiley-Blackwell Jan2025
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2025
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        atl: Price matching in online retail.
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        au:
          Bottasso, Anna
          Robbiano, Simone
          Marocco, Paolo
        affil:
          Department of Economics, University of Genoa, Genoa, Italy
          Independent Researcher
      su:
        Electronic commerce
        Prices
        Retail industry
        Price discrimination
        Online shopping
      sug:
        subj:
          Electronic commerce
          Prices
          Retail industry
          All other miscellaneous general merchandise stores
          All Other Miscellaneous Store Retailers (except Tobacco Stores)
          All other miscellaneous store retailers (except beer and wine-making supplies stores)
          Mail-Order Houses
          Electronic shopping and mail-order houses
          Electronic Shopping
          Price discrimination
          Online shopping
      keyword:
        collusion
        consumer electronics
        difference‐in‐differences
        online retailing
        price discrimination
        price matching guarantees
        retail pricing strategies
        search costs
        signaling
        user generated contents
        collusion
        consumer electronics
        difference‐in‐differences
        online retailing
        price discrimination
        price matching guarantees
        retail pricing strategies
        search costs
        signaling
        user generated contents
      ab: We analyze a sample of consumer‐electronics products sold by the US NewEgg online‐retailer to study the impact of price‐matching guarantees (PMGs) on prices. By applying a difference‐in‐differences approach, we find that the price of the policy‐adopting retailer increases by 4.7% during the policy validity period and up to 5 days after the treatment, while those of the non‐adopting competitor are not affected. Results are mainly driven by highly‐rated, visible, and expensive products, whereas the policy does not affect low‐rated, less visible, and cheaper products. These findings are consistent with the hypotheses that PMGs act as price discrimination or signaling tools.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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