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Market Structure and Market Performance in E-Commerce

Author

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  • Hackl, Franz
  • Kummer, Michael E
  • Winter-Ebmer, Rudolf
  • Zulehner, Christine

Abstract

We 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.

Suggested Citation

  • 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.
  • Handle: RePEc:cpr:ceprdp:9001
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    References listed on IDEAS

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    Cited by:

    1. Harkonen, Janne & Haapasalo, Harri & Hanninen, Kai, 2015. "Productisation: A review and research agenda," International Journal of Production Economics, Elsevier, vol. 164(C), pages 65-82.
    2. repec:taf:oabmxx:v:4:y:2017:i:1:p:1405509 is not listed on IDEAS
    3. repec:eee:indorg:v:52:y:2017:i:c:p:30-62 is not listed on IDEAS

    More about this item

    Keywords

    Market Performance; Market Structure; Markup; Price Dispersion; Product Lifecycle; Retailing;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • 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

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