Zettelmeyer, F., Morton, F. S., &Silva-Risso, J. (2006). How the Internet lowers prices: Evidence from matched survey and automobile transaction data.
Although research has shown that the Internet has lowered the prices in some established industries, little is known about how use of the Internet lowers prices. The authors address this issue for the automobile retailing industry with matched survey and transaction data on 1500 car purchases in California. They show that the Internet lowers prices for two distinct reasons: First, the Internet informs consumers about ...