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An Analysis Of International Price Differentials On Ebay

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  • PHILIPP MAIER

Abstract

"Online auction sites like eBay provide ways to measure what consumers buy and how much they pay. Does this imply that consumers pay similar prices, irrespective of their location? Comparing prices for homogeneous, tradable goods in the euro area and the United Kingdom, we find that prices differ significantly. The differential is not related to countries' having different currencies. However, price dispersion-the variance of prices-does seem to be smaller if two countries share a common currency. Our results confirm the importance of national borders in explaining price differences and their magnitude is related to (not) sharing a common currency." ("JEL" E30, E31, E50, F40) Copyright (c) 2009 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 28 (2010)
Issue (Month): 3 (07)
Pages: 307-321

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Handle: RePEc:bla:coecpo:v:28:y:2010:i:3:p:307-321

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Cited by:
  1. Fung, Kwok-Chiu & Garcia-Herrero, Alicia & Ng, Francis, 2013. "International Price Dispersion and Market Segmentation in Japan and the United States: Theory and Empirics," ADBI Working Papers 417, Asian Development Bank Institute.
  2. Liu, Kang Ernest & Shiu, Ji-Liang & Sun, Chia-Hung, 2013. "How different are consumers in Internet auction markets? Evidence from Japan and Taiwan," Japan and the World Economy, Elsevier, vol. 28(C), pages 1-12.

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