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DOES INFORMATION UNDERMINE BRAND? INFORMATION INTERMEDIARY USE AND PREFERENCE FOR BRANDED WEB RETAILERS -super-

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  • JOEL WALDFOGEL
  • LU CHEN

Abstract

Investments in brand, and third-party information, provide alternative methods for convincing potential customers that vendors will deliver as promised. This study uses a 13-month panel dataset on 1998-99 Internet shopping behavior and use of information intermediaries by over 30,000 households to examine whether information use undermines brand. Individuals using price comparison sites substantially increase their level of shopping at unbranded retail sites, while they shop less at Amazon. The results have possible implications for both firm strategy and the evolution of market structure. If information weakens the pull of brand, then Internet retailing may grow less concentrated over time. Copyright Blackwell Publishing Ltd. 2006.

Suggested Citation

  • Joel Waldfogel & Lu Chen, 2006. "DOES INFORMATION UNDERMINE BRAND? INFORMATION INTERMEDIARY USE AND PREFERENCE FOR BRANDED WEB RETAILERS -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 54(4), pages 425-449, December.
  • Handle: RePEc:bla:jindec:v:54:y:2006:i:4:p:425-449
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    Cited by:

    1. Ajay Agrawal & Christian Catalini & Avi Goldfarb, 2014. "Some Simple Economics of Crowdfunding," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 63-97.
    2. Jin Li & Kwok Fai Tso & Fangtao Liu, 2017. "Profit earning and monetary loss bidding in online entertainment shopping: the impacts of bidding patterns and characteristics," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(1), pages 77-90, February.

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