Journal article 844 views 166 downloads
The responses of internet retail prices to aggregate shocks: A high-frequency approach
Yuriy Gorodnichenko,
Viacheslav Sheremirov,
Sasha Talavera 
Economics Letters, Volume: 164, Pages: 124 - 127
Swansea University Author:
Sasha Talavera
DOI (Published version): 10.1016/j.econlet.2018.01.014
Abstract
Using a unique dataset of daily price listings and the associated number of clicks for precisely defined goods from a major shopping platform, we examine whether internet prices respond to aggregate shocks at a high frequency. Despite internet retailers’ unique position to exercise dynamic pricing d...
| Published in: | Economics Letters |
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| ISSN: | 01651765 |
| Published: |
2018
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| Online Access: |
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| URI: | https://cronfa.swan.ac.uk/Record/cronfa39296 |
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| Abstract: |
Using a unique dataset of daily price listings and the associated number of clicks for precisely defined goods from a major shopping platform, we examine whether internet prices respond to aggregate shocks at a high frequency. Despite internet retailers’ unique position to exercise dynamic pricing due to low costs of nominal price adjustment, we find little evidence that online prices respond promptly to unanticipated announcements about macroeconomic activity. Shopping activity also appears unresponsive to aggregate shocks, suggesting that internet retailers may follow individual demand for their products more closely than aggregate demand. |
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| Keywords: |
online markets, price stickiness, aggregate shocks, high-frequency approach |
| College: |
Faculty of Humanities and Social Sciences |
| Start Page: |
124 |
| End Page: |
127 |