ECIN Replication Package for "Price Matching in Online Retail"
Principal Investigator(s): View help for Principal Investigator(s) Anna Bottasso, University of Genoa; Simone Robbiano, University of Genoa
Version: View help for Version V2
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Project Description
Summary:
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This document describes how to replicate the results of “Price Matching in Online Retail”.
In this work, we analyze a sample of consumer electronics products sold by the US NewEgg online retailer to study the impact of price-matching guarantees (PMGs) on prices. By applying a difference-in-differences approach, we find that the price of the policy-adopting retailer increases by 4.7% during the policy validity period and up to five days after treatment, while those of the non-adopting competitor are not affected. The results are mainly driven by highly rated, visible, and expensive products, whereas the policy does not affect low-rated, less visible, and cheaper products. These findings are consistent with the hypothesis that PMGs act as price discrimination or signaling tools.
In this work, we analyze a sample of consumer electronics products sold by the US NewEgg online retailer to study the impact of price-matching guarantees (PMGs) on prices. By applying a difference-in-differences approach, we find that the price of the policy-adopting retailer increases by 4.7% during the policy validity period and up to five days after treatment, while those of the non-adopting competitor are not affected. The results are mainly driven by highly rated, visible, and expensive products, whereas the policy does not affect low-rated, less visible, and cheaper products. These findings are consistent with the hypothesis that PMGs act as price discrimination or signaling tools.
Scope of Project
Subject Terms:
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Price Matching Guarantees;
Online Retailing;
User Generated Contents;
Difference-in-Differences;
Price Discrimination;
Collusion;
Signalling
JEL Classification:
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L11 Production, Pricing, and Market Structure; Size Distribution of Firms
L13 Oligopoly and Other Imperfect Markets
L15 Information and Product Quality; Standardization and Compatibility
L81 Retail and Wholesale Trade; e-Commerce
L11 Production, Pricing, and Market Structure; Size Distribution of Firms
L13 Oligopoly and Other Imperfect Markets
L15 Information and Product Quality; Standardization and Compatibility
L81 Retail and Wholesale Trade; e-Commerce
Manuscript Number:
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ECIN-Jun-2022-0284.R4
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