The Geography of Trade in Online Transactions: Evidence from eBay and MercadoLibre

@article{Hortasu2009TheGO,
  title={The Geography of Trade in Online Transactions: Evidence from eBay and MercadoLibre},
  author={Ali Hortaçsu and F. As{\'i}s Mart{\'i}nez-Jerez and Jason Douglas},
  journal={American Economic Journal: Microeconomics},
  year={2009},
  volume={1},
  pages={53-74}
}
We analyze geographic patterns of trade between individuals using transactions data from eBay and MercadoLibre, two large online auction sites. We find that distance continues to be an important deterrent to trade between geographically separated buyers and sellers, though to a lesser extent than has been observed in studies of non-Internet commerce between business counterparties. We also find a strong "home bias" for trading with counterparties located in the same city. Further analyses… 

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