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

@inproceedings{Scholten2004PriceDI,
  title={Price Dispersion in the Small and in the Large : Evidence from an Internet Price Comparison Site},
  author={Patrick A. Scholten},
  year={2004}
}
This paper examines four million daily price observations for more than 1,000 consumer electronics products on the price comparison site Shopper.com. We find little support for the notion that prices on the Internet are converging to the ‘lawofoneprice.’ Inaddition,observed levels of price dispersion vary systematically with the number of firms listing prices. The difference between the two lowest prices (the ‘gap’) averages 23 per centwhen twofirms list prices, and falls to 3.5per cent… CONTINUE READING
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