Market Entry in E-Commerce
AbstractWe analyze the behavior of start-ups in e-commerce, namely on Austria's leading price-comparison-site, a multi-product environment with almost complete information. We use weekly panel data on price-quotes of digicams, Audio/HiFi-equipment and hardware. We furthermore use advanced estimation methods, which, having only recently been introduced to IO, aim at using a minimum of modeling assumptions. Thus, being able to trace the behavior of roughly 350 start-up companies and 600 incumbents, we investigate whether start-ups have a different composition of product-portfolios, charge lower prices and offer fewer goods.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 08-23.
Length: 34 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
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Web page: http://www.NETinst.org/
nonparametric estimation; panel data; start-up; entry; e-commerce; strategic behavior; pricing;
Find related papers by JEL classification:
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-11-04 (All new papers)
- NEP-COM-2008-11-04 (Industrial Competition)
- NEP-ENT-2008-11-04 (Entrepreneurship)
- NEP-ICT-2008-11-04 (Information & Communication Technologies)
- NEP-IND-2008-11-04 (Industrial Organization)
- NEP-MIC-2008-11-04 (Microeconomics)
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