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Market Entry in E-Commerce

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Author Info
Maximilian Kasy () (UC-Berkeley, Department of Economics)
Michael Kummer () (Johannes Keppler University, Linz, Austria)

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Abstract

We 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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File URL: http://www.netinst.org/Kasy_Kummer_08-23.pdf
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Publisher Info
Paper provided by NET Institute in its series Working Papers with number 08-23.

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Length: 34 pages
Date of creation: Sep 2008
Date of revision: Sep 2008
Handle: RePEc:net:wpaper:0823

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Web page: http://www.NETinst.org/

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Related research
Keywords: 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: General - - - Semiparametric and Nonparametric Methods
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
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

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This page was last updated on 2010-3-1.

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