Internet Car Retailing.
We investigate the effect of Internet car referral services on dealer pricing of automobiles in California. Customers of an online service pay on average 2% less for their car ($450 for the average car). 25% of the savings come from purchasing at low-price dealerships affiliated with the online service. The remaining 75% stem from information provision by the online service, bargaining by the service on behalf of consumers, and cost efficiencies. A consumer receiving the mean online price does better than 65% of offline consumers, conditional on the car being purchased. Copyright 2001 by Blackwell Publishing Ltd
Year of publication: |
2001
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Authors: | Morton, Fiona Scott ; Zettelmeyer, Florian ; Silva-Risso, Jorge |
Published in: |
Journal of Industrial Economics. - Wiley Blackwell. - Vol. 49.2001, 4, p. 501-19
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Publisher: |
Wiley Blackwell |
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