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Consumer Price Search and Platform Design in Internet Commerce
Internet Commerce Consumer Price Search
2015/7/17
Search frictions can explain why the ìlaw of one priceî fails in retail
markets and why even Örms selling commodity products have pricing power. In
online commerce, physical search costs a...
We estimate the sensitivity of Internet retail purchasing to sales taxes
using eBay data. Our first approach exploits the fact that a seller’s
location—and therefore the applicable tax rate—is rev...