David Weinstein

AMSE lectures

David Weinstein

Columbia University
The impact of e-commerce on relative prices and consumer welfare
Joint with
Yoon J. Jo, Misaki Matsumura
Venue

IBD Amphi

Îlot Bernard du Bois - Amphithéâtre

AMU - AMSE
5-9 boulevard Maurice Bourdet
13001 Marseille

Date(s)
Monday, September 23 2019| 2:30pm to 4:15pm
Contact(s)

Yann Bramoullé: yann.bramoulle[at]univ-amu.fr

Abstract

Using Japanese data on intercity prices and expenditures by retail outlet type, we find that the entry of e-commerce firms reduced the rate of price increase for goods sold intensively online relative to other goods, and significantly reduced intercity price dispersion of goods sold intensively online but had no effect on other goods. We overcome endogeneity issues by using historical catalog sales as an instrument for e-commerce sales intensity and estimate that reductions in price dispersion raised welfare by 0.3 percent. E-Commerce also lowered variety adjusted prices on average by 0.9 percent, and more in cities with highly educated populations.

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