No Cover Image

Journal article 205 views 4 downloads

The responses of internet retail prices to aggregate shocks: A high-frequency approach / Sasha, Talavera

Economics Letters, Volume: 164, Pages: 124 - 127

Swansesa University Authors: Sasha, Talavera, Sasha, Talavera

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...

Full description

Published in: Economics Letters
ISSN: 01651765
Published: 2018
Online Access: Check full text

URI: https://cronfa.swan.ac.uk/Record/cronfa39296
Tags: Add Tag
No Tags, Be the first to tag this record!
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.
Keywords: online markets, price stickiness, aggregate shocks, high-frequency approach
College: School of Management
Start Page: 124
End Page: 127