E‐Commerce and the Market Structure of Retail Industries

Datos Bibliográficos

ID9704422
AutoresMaris Goldmanis (0000-0002-5233-4091, University of Chicago), Ali Hortaçsu (University of Chicago and NBER), Alı Hortaçsu (0000-0002-3978-8005, University of Chicago), Chad Syverson (0009-0007-7504-7283, University of Chicago), Önsel Emre (Putnam Investments)
Año2010
Volumen120
Número545
Páginas651-682
Fecha de publicación2010-06-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2009.02310.x
OpenAlexW3123744978
IdiomaEN
Citas recibidas19
Referencias citadas22

This article 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 high-cost to low-cost producers. We test the model using US data for three industries: travel agencies, bookstores and new car dealers. Each industry exhibits the market share shifts predicted by the model but the mechanisms vary, ranging from aggregate factors in the travel industry to local-market factors in the other two industries. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009

Business · Commerce · Industrial organization · Market share · Market structure · Supply side · Consumer Market Behavior and Pricing · Firm Innovation and Growth · Marketing · Merger and Competition Analysis