This paper analyzes search frictions in online markets using novel data on the web browsing and purchasing behavior of a large panel of consumers. This dataset is unique in that consumer search behavior prior to a transaction is observed. Although recent models have shown that large price...

Internet auctions have recently gained widespread popularity and are one of the most successful forms of electronic commerce. We examine a dataset of eBay coin auctions to explore features of online bidding and selling behavior. We find that profit margins for bidders are slim on average, that...