Price Dispersion in the Small and in the Large: Evidence from an Internet Price Comparison Site

By Michael R. Baye, John Morgan, Patrick A. Scholten. 2004

549 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/62b472bca468f59a953da1fe3b15b40d72124684

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Citations in the corpus

Prices, Spatial Competition, and Heterogenous Producers: An Empirical Test (2007, unknown): “Recent research such as Sorensen (2000); Clay, Krishnan, and Wolff (2001); Goolsbee and Brown (2002); Chevalier and Goolsbee (2003); Baye, Morgan, and Scholten (2004); and Goldberg and Verboven (2005) has inferred consumers' substitution possibilities (or lack thereof) from observed price…”
Consumer search and dynamic price dispersion: an application to gasoline markets (2011, background): “6Other studies of online markets include Clay et al. (2001), Smith and Brynjolfsson (2001) and Baye et al. (2004).”
Assessing Sale Strategies in Online Markets Using Matched Listings (2015, background): “Yet studies by Bailey (1998); Smith and Brynjolfsson (2001); Baye, Morgan, and Scholten (2004); and Ellison and Ellison (2009), all report substantial dispersion in posted prices, even on structured price comparison websites.7 Recent work by Malmendier and Lee (2011) also provides a striking…”
Information, Search, and Price Dispersion (2006, background): “20To facilitate comparisons across di¤erent products or over time, it is sometimes useful to normalize the range by dividing it by the minimum or average price; see Baye, Morgan, and Scholten (2004b) and Brynjolfsson and Smith (2000).”
Competition in Pricing Algorithms (2020, background): “, Baye et al., 2004; Ellison and Ellison, 2005). A large empirical literature has focused on demand-side features such as search frictions, but little attention has been paid to firm conduct.11 One exception is Ellison et al. (2018), who examine managerial inattention and price dispersion in an onli”
Internet Exchanges for Used Books: An Empirical Analysis of Product Cannibalization and Welfare Impact (2006, background): “2004) and PDAs (Baye et al. 2004) sold by differentiated sellers to −50 for a shopbot listing computer motherboards and memory modules sold by undifferentiated sellers.”
Price Dispersion in the Lab and on the Internet: Theory and Evidence (2004, background): “F i (p) = 1− g 3 p ́ − g (p) g (pM)− g (c)  1 1+λ−nλ (4) where g (p) ≡ R π (p) dp+K.”