Bias and size effects of price-comparison platforms: theory and experimental evidence

Garcia Gallego, A., Georgantzis, N., Pereira, P. and Pernias-Cerrillo, J. C. (2017) Bias and size effects of price-comparison platforms: theory and experimental evidence. Review of Network Economics, 15 (1). pp. 1-34. ISSN 1446-9022 doi: 10.1515/rne-2016-0015

Abstract/Summary

We analyze the impact on consumer prices of some information characteristics of price comparison search platforms. An equilibrium model where vendors compete in prices and consumers do not observe prices, but can obtain price information through a search platform, is developed. The model generates several predictions about the impact on the price distribution of: (i) the size of the search platform’s sample, (ii) whether the search platform’s sample is random, and (iii) the number of vendors in the market. The model’s predictions are tested experimentally. The results confirm the predictions about (ii) and (iii), but reject the model’s predictions about (i).

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/68815
Identification Number/DOI	10.1515/rne-2016-0015
Refereed	Yes
Divisions	Life Sciences > School of Agriculture, Policy and Development > Department of Agri-Food Economics & Marketing
Publisher	De Gryuter
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