Internet and the efficiency of decentralized markets: Evidence from automobiles

We estimate the effect of Internet on the volume of used car transactions. From 1997 to 2007, Internet use tripled in California, causing an increase in volume-of-trade of 7.2 %. This implies a substantial welfare gain via improved allocative efficiency.

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Year of publication:	2013
Authors:	Rapson, David ; Schiraldi, Pasquale
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 121.2013, 2, p. 232-235
Publisher:	Elsevier
Subject:	Transaction costs \| Internet \| Automobiles

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Type of publication:	Article
Classification:	D1 - Household Behavior and Family Economics ; D8 - Information and Uncertainty ; L9 - Industry Studies: Transportation and Utilities
Source:	RePEc - Research Papers in Economics

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