Market Structure and Market Performance in E-Commerce
AbstractWe investigate the causal effect of market structure on market performance in the consumer electronics. We combine data from Austria’s largest online site for price comparisons with retail data on wholesale prices provided by a major hardware producer for consumer electronics. We observe input prices of firms, and all their moves in the entry and the pricing game over the whole product lifecycle. Using this information for 70 digital cameras, we generate instrumental variables for the number of firms in the market based on the shops’ entry decisions on other product markets in the past. We find that instrumenting is particularly important for estimating the effect of competition on the markup of the price leader.
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Bibliographic InfoPaper provided by Institute for Advanced Studies in its series Economics Series with number 287.
Length: 40 pages
Date of creation: Jun 2012
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Other versions of this item:
- Franz Hackl & Michael E. Kummer & Rudolf Winter-Ebmer & Christine Zulehner, 2012. "Market Structure and Market Performance in E-Commerce," Economics working papers 2012-07, Department of Economics, Johannes Kepler University Linz, Austria.
- Hackl, Franz & Kummer, Michael E & Winter-Ebmer, Rudolf & Zulehner, Christine, 2012. "Market Structure and Market Performance in E-Commerce," CEPR Discussion Papers 9001, C.E.P.R. Discussion Papers.
- Hackl, Franz & Kummer, Michael E. & Winter-Ebmer, Rudolf & Zulehner, Christine, 2012. "Market structure and market performance in e-commerce," ZEW Discussion Papers 11-084 [rev.], ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Franz Hackl & Michael E. Kummer & Rudolf Winter-Ebmer & Christine Zulehner, 2014. "Market Structure and Market Performance in E-Commerce," Economics working papers 2014-04, Department of Economics, Johannes Kepler University Linz, Austria.
- Hackl, Franz & Kummer, Michael E. & Winter-Ebmer, Rudolf & Zulehner, Christine, 2011. "Market structure and market performance in e-commerce," ZEW Discussion Papers 11-084, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-08 (All new papers)
- NEP-BEC-2012-07-08 (Business Economics)
- NEP-COM-2012-07-08 (Industrial Competition)
- NEP-IND-2012-07-08 (Industrial Organization)
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