Internet car retailing

Fiona Scott Morton; Florian Zettelmeyer; Jorge Silva-Risso

doi:10.1111/1467-6451.00160

Internet car retailing

Fiona Scott Morton^*, Florian Zettelmeyer, Jorge Silva-Risso

^*Corresponding author for this work

Marketing

Research output: Contribution to journal › Article › peer-review

176 Scopus citations

Abstract

We investigate the effect of Internet car referral services on dealer pricing of automobiles in California. Customers of an online service pay on average 2% less for their car ($450 for the average car). 25% of the savings come from purchasing at low-price dealerships affiliated with the online service. The remaining 75% stem from information provision by the online service, bargaining by the service on behalf of consumers, and cost efficiencies. A consumer receiving the mean online price does better than 65% of offline consumers, conditional on the car being purchased.

Original language	English (US)
Pages (from-to)	501-519
Number of pages	19
Journal	Journal of Industrial Economics
Volume	49
Issue number	4
DOIs	https://doi.org/10.1111/1467-6451.00160
State	Published - Dec 2001

ASJC Scopus subject areas

Accounting
Business, Management and Accounting(all)
Economics and Econometrics

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Internet car retailing

Abstract

ASJC Scopus subject areas

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