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Price, price dispersion and number of sellers at a low entry cost shopbot

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  • Haynes, Michelle
  • Thompson, Steve

Abstract

Shopbots function as market intermediaries by providing unprecedented quantities of information to buyers and sellers. This paper explores the role of market structure across shopbot mediated markets using an unbalanced panel of 399 digital camera models. It extends prior work by using an ultra-low entry cost site, additionally allowing controls for life cycle and popularity effects. We find a robust negative relationship between seller number and price, which persists even as markets become crowded with sellers. The results are capable of either an SCP or a Carlson-McAfee heterogeneous cost interpretation, but observed entry behaviour here is consistent with the latter.

Suggested Citation

  • Haynes, Michelle & Thompson, Steve, 2008. "Price, price dispersion and number of sellers at a low entry cost shopbot," International Journal of Industrial Organization, Elsevier, vol. 26(2), pages 459-472, March.
  • Handle: RePEc:eee:indorg:v:26:y:2008:i:2:p:459-472
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hackl, Franz & Kummer, Michael E. & Winter-Ebmer, Rudolf & Zulehner, Christine, 2014. "Market structure and market performance in E-commerce," European Economic Review, Elsevier, vol. 68(C), pages 199-218.
    2. Chhabra, Meenal & Das, Sanmay & Sarne, David, 2014. "Expert-mediated sequential search," European Journal of Operational Research, Elsevier, vol. 234(3), pages 861-873.
    3. Moraga-González, José Luis & Sándor, Zsolt & Wildenbeest, Matthijs R., 2017. "Nonsequential search equilibrium with search cost heterogeneity," International Journal of Industrial Organization, Elsevier, vol. 50(C), pages 392-414.
    4. Michelle Haynes & Steve Thompson, 2013. "Entry and Exit Behavior in the Absence of Sunk Costs: Evidence from a Price Comparison Site," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 42(1), pages 1-23, February.
    5. Kenneth Gillingham, Hao Deng, Ryan Wiser, Naim Darghouth, Gregory Nemet, Galen Barbose, Varun Rai, and Changgui Dong, 2016. "Deconstructing Solar Photovoltaic Pricing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    6. repec:bla:obuest:v:79:y:2017:i:2:p:234-250 is not listed on IDEAS
    7. Anania, Giovanni & Nistico, Rosanna, 2012. "Price dispersion, search costs and consumers and sellers heterogeneity in retail food markets," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125594, International Association of Agricultural Economists.
    8. Anania, Giovanni & Nisticò, Rosanna, 2014. "Price dispersion and seller heterogeneity in retail food markets," Food Policy, Elsevier, vol. 44(C), pages 190-201.
    9. Michelle Haynes & Steve Thompson & Peter W. Wright, 2014. "New Model Introductions, Cannibalization and Market Stealing: Evidence from Shopbot Data," Manchester School, University of Manchester, vol. 82(4), pages 385-408, July.
    10. repec:smu:ecowpa:1301 is not listed on IDEAS

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