Consumer Price Search and Platform Design in Internet Commerce

==noted by yinung==
這個網站搜尋、比價的主題很久了, 但仍是有趣, 也是有人用 law of one price 的觀念來看, 但裡頭的實驗怎麼做, 再了解。
Date: 2014-08
By: Michael Dinerstein
Liran Einav
Jonathan Levin
Neel Sundaresan
URL: http://d.repec.org/n?u=RePEc:nbr:nberwo:20415&r=net
Search frictions can explain why the “law of one price" fails in retail markets and why even firms selling commodity products have pricing power. In online commerce, physical search costs are low, yet price dispersion is common. We use browsing data from eBay to estimate a model of consumer search and price competition when retailers offer homogeneous goods. We find that retail margins are on the order of 10%, and use the model to analyze the design of search rankings. Our model explains most of the effects of a major re-design of eBay’s product search, and allows us to identify conditions where narrowing consumer choice sets can be pro-competitive. Finally, we examine a subsequent A/B experiment run by eBay that illustrates the greater difficulties in designing search algorithms for differentiated products, where price is only one of the relevant product attributes.
JEL: D12 D22 D83 L13 L86
廣告

New Zealand Economic Papers. Special Issue: Laboratory Experiments in Economics, Finance and Political Science

New Zealand Economic Papers. Special Issue: Laboratory Experiments in Economics, Finance and Political Science, 43(2),87-225.

Editorial

Laboratory experiments in economics, finance and political science
Charles Noussair; Maroš Servátka; Steven Tucker
Pages 87 – 88
Full Text PDF | Full Text HTML | Abstract
Request Permissions | Related Articles

Research articles

Trust and reciprocity: implications of game triads and social contexts
James C. Cox
Pages 89 – 104
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Cited By | Related Articles

Bargaining under large risk – an experimental analysis
Werner Güth; Sabine Kröger; Ernst Maug
Pages 105 – 129
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Related Articles

Anonymity deters collusion in hard-close auctions: experimental evidence
Sascha Füllbrunn; Tibor Neugebauer
Pages 131 – 148
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Related Articles

Prices in experimental asset markets under uncertainty
Carmela Di Mauro
Pages 149 – 163
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Related Articles

The disciplining role of repeated elections: some experimental evidence
Sugato Dasgupta
Pages 165 – 190
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Related Articles

Experimental evidence on advertising and price competition
Ninghua Du
Pages 191 – 202
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Related Articles

Potential competition in the presence of sunk entry costs: an experiment
Utteeyo Dasgupta
Pages 203 – 225
Full Text PDF | Full Text HTML | Abstract
References | Request Permissions | Related Articles