Author:
Aparicio Diego,Metzman Zachary,Rigobon Roberto
Abstract
AbstractThis paper documents the differences in pricing strategies between online and offline (brick-and-mortar) channels. We collect price data for identical products from leading online grocery retailers in the United States and complement it with offline data for the same products from scanner data. Our findings reveal a consistent pattern: online retailers exhibit higher price dispersion than their offline counterparts. More specifically, online grocers employ price algorithms that amplify price discrimination in three key dimensions: (1) over time (through frequent price changes), (2) across locations (by charging varying prices based on delivery zipcodes), and (3) across sellers (by setting dispersed prices for identical products across rival retailers).
Funder
H2020 Marie Skłodowska-Curie Actions
Universidad de Navarra
Publisher
Springer Science and Business Media LLC
Subject
Marketing,Economics, Econometrics and Finance (miscellaneous)
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