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Internet Car Retailing

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Author Info
Morton, Fiona Scott
Zettelmeyer, Florian
Silva-Risso, Jorge
Abstract

We investigate the effect of Internet car referral services on dealer pricing of automobiles in California. Customers of an online service pay on average 2% less for their car ($450 for the average car). 25% of the savings come from purchasing at low-price dealerships affiliated with the online service. The remaining 75% stem from information provision by the online service, bargaining by the service on behalf of consumers, and cost efficiencies. A consumer receiving the mean online price does better than 65% of offline consumers, conditional on the car being purchased. Copyright 2001 by Blackwell Publishing Ltd

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Industrial Economics.

Volume (Year): 49 (2001)
Issue (Month): 4 (December)
Pages: 501-19
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:bla:jindec:v:49:y:2001:i:4:p:501-19

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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

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