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Price Dispersion and Price Level: Online vs. Offline- A Quantitative Analysis

Händén Svensson, Erik (2006)
Department of Economics
Abstract
With the use of basic theory the effect of the Internet’s reduction in search cost is analysed. Two samples of prices of CD-albums, one from the offline and one from the online market, are used to test the hypotheses that prices are lower and less dispersed on the Internet. The results are supportive of lower prices online but inconclusive on the issue of price dispersion. Some pointers for new research are also included.
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@misc{1334376,
  abstract     = {With the use of basic theory the effect of the Internet’s reduction in search cost is analysed. Two samples of prices of CD-albums, one from the offline and one from the online market, are used to test the hypotheses that prices are lower and less dispersed on the Internet. The results are supportive of lower prices online but inconclusive on the issue of price dispersion. Some pointers for new research are also included.},
  author       = {Händén Svensson, Erik},
  keyword      = {Internet,imperfect information,price dispersion,CD,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Price Dispersion and Price Level: Online vs. Offline- A Quantitative Analysis},
  year         = {2006},
}