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Prices and Price Dispersion on the Web: Evidence from the Online Book Industry
Open accessAbstract
Using data collected between August, 1999, and January, 2000, covering 399 books, we examine pricing by thirty‐two online United States‐based bookstores. At the aggregate level, we find that both advertising and competitive structure had the predicted effects. More competition led to lower prices and to lower price dispersion. Holding competitive structure constant, more widely advertised items also had lower prices. At the firm level, we observe considerable heterogeneity in behavior. Firms had differentiated (or attempted to differentiate) on dimensions such as brand, price, and selection.
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Citations
Cited by
Brynjolfsson, E., Hu, Y. (., & Simester, D. (2011) · Management Science · doi:10.1287/mnsc.1110.1371 · Cited by 847
Search, Obfuscation, and Price Elasticities on the Internet
(2009) · Econometrica · doi:10.3982/ecta5708 · Cited by 562
Match Quality, Search, and the Internet Market for Used Books
Ellison, G., & Ellison, S. F. (2018) · doi:10.3386/w24197 · Cited by 53
Electronic Travel Markets: Elusive Effects on Consumer Behavior
Öörni, A., & Klein, S. (2003) · Information and Communication Technologies in Tourism 2003 · doi:10.1007/978-3-7091-6027-5_4 · Cited by 12
Metadata
- Authors
- Clay, K., Krishnan, R., & Wolff, E.
- Venue
- The Journal of Industrial Economics
- Publisher
- Wiley
- Published
- 2001-12
- Volume
- 49
- Issue
- 4
- Pages
- 521-539
- ISSN
- 0022-1821 (ISSN-L)
- 1467-6451
- OpenAlex
- W1589888655
- Cited by
- 371
- References
- 0
- FWCI
- 122.00
- Type
- journal article
- Language
- en
- Open access
- green
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- CoChat. (2026). Citation check: Prices and Price Dispersion on the Web: Evidence from the Online Book Industry. https://app.cochat.ai/papers/10.1111/1467-6451.00161
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- Clay, K., Krishnan, R., & Wolff, E. (2001). Prices and Price Dispersion on the Web: Evidence from the Online Book Industry. The Journal of Industrial Economics. https://doi.org/10.1111/1467-6451.00161
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