E-commerce and the Market Structure of Retail Industries 1 SHORT FORM : ‘ E-commerce and Market Structure

@inproceedings{Goldmanis1998EcommerceAT,
  title={E-commerce and the Market Structure of Retail Industries 1 SHORT FORM : ‘ E-commerce and Market Structure},
  author={Maris Goldmanis and Ali Hortaçsu and Chad Syverson and {\"O}nsel Emre},
  year={1998}
}
This paper examines the effect of the advent and diffusion of e-commerce on supply-side industry structure. We specify a general industry model involving consumers with differing search costs buying products from heterogeneous producers. We interpret e-commerce as a reduction in consumers’ search costs. We show how it reallocates market shares from highcost to low-cost producers. We test the model using US data for three industries: travel agencies, bookstores, and new auto dealers. Each… CONTINUE READING
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