Competition in the Computer Industry: Online versus Retail
AbstractThis paper estimates the price sensitivity of individuals' choice of whether to buy computers online versus in retail stores using a new data source on the computer purchases of more than 20,000 people. The paper first fits hedonic regressions for the retail price of computers in a local area and then examines how that price influences the probability of buying online. The results indicate that the decision is sensitive to the relative price of retail computers and it varies by type of customer and type of computer. Conditional on buying a computer, the elasticity of buying remotely with respect to retail store prices is about 1.5. Copyright 2001 by Blackwell Publishing Ltd
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Bibliographic InfoArticle provided by Wiley Blackwell in its journal Journal of Industrial Economics.
Volume (Year): 49 (2001)
Issue (Month): 4 (December)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821
Other versions of this item:
- Austan Goolsbee, 2001. "Competition in the Computer Industry: Online Versus Retail," NBER Chapters, in: E-commerce, pages 487-499 National Bureau of Economic Research, Inc.
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- Beethika Khan, 2004. "Consumer Adoption of Online Banking: Does Distance Matter?," Development and Comp Systems 0407002, EconWPA.
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- Prince, Jeffrey T., 2007. "The beginning of online/retail competition and its origins: An application to personal computers," International Journal of Industrial Organization, Elsevier, vol. 25(1), pages 139-156, February.
- Khan, Beethika S., 2004. "Consumer Adoption of Online Banking: Does Distance Matter?," Department of Economics, Working Paper Series qt2bt1d76s, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Ginger Jin & Andrew Kato, 2004. "Dividing online and offline: A case study," Natural Field Experiments 00276, The Field Experiments Website.
- Michael R. Baye & John Morgan & Patrick Scholten, 2006. "Information, Search, and Price Dispersion," Working Papers 2006-11, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy.
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