Price dispersion then and now: Evidence from retail and e-tail markets

Abstract

This paper uses two datasets to examine price dispersion spanning a 24-year period. The first dataset permits us to compare levels of retail price dispersion in 1976 and 2000, while the second allows for a comparison of retail dispersion in 1976 with dispersion in e-tail markets in 2000. Our results indicate that price dispersion in 2000 for both retail and e-tail markets is comparable to that observed in 1976 retail markets. This suggests that, for the products in our sample, the Information Age has done little to reduce price dispersion in retail or e-tail markets.

Citation

Scholten, P. and Adam Smith, S. (2002), "Price dispersion then and now: Evidence from retail and e-tail markets", Baye, M.R. (Ed.) The Economics of the Internet and E-commerce (Advances in Applied Microeconomics, Vol. 11), Emerald Group Publishing Limited, Leeds, pp. 63-88. https://doi.org/10.1016/S0278-0984(02)11028-5