The Impact of the Internet on Information Search for Automobiles

Abstract

Using data from surveys of automobile buyers collected in 1990 and 2000 in a natural experiment setting, the authors study the determinants of use of the Internet as a source of information on automobiles, its impact on the use of other sources, and its impact on total search effort. The results indicate that the Internet draws attention in approximately the same proportion from other sources. The results also show that those who use the Internet to search for automobiles are younger and more educated and search more in general. However, the analysis also indicates that they would have searched even more if the Internet had not been present.