last lecture Flashcards
Caveat
study of shoes where niche products varies geographically mainly due to weather
what is the additional value to ocnsumers created by the increase in variety provided by online retail
Long tail products do lead to welfare gains
But the effects are smaller than we might believe because traditional retail knows niche products vary across geography and supplies somewhat accordingly
Large proportion of the welfare gain comes from price reductions due to competition rather than matching niche preferences
how do pricing strategies vary within and across online and offline retailers
Nire oruce varuatuib ibkube abd acriss retailer
prices change more often online and by smaller amounts
How do online and offline grocery shopping purchases differ
Online grocery trips feature
Lower basket variety
More similarity between trips
Less fresh vegetable and less impulse purchases
