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来源类型Working Paper
规范类型报告
DOI10.3386/w8067
来源IDWorking Paper 8067
Free Riding and Sales Strategies for the Internet
Dennis W. Carlton; Judith A. Chevalier
发表日期2001
出版年2001
语种英语
摘要We examine manufacturers' decisions of whether and how to offer their products for sale over the internet. Manufacturers that rely on promotion of their products by brick and mortar retailers must consider the possibility that internet retailers can free ride off of that promotional effort. This creates an incentive for manufacturers to limit the availability of their products over the internet and to control the pricing of their products over the internet. We examine three categories of products: fragrances, DVD players, and side by side refrigerators. Our evidence suggests that manufacturers that limit distribution in the physical world also use various mechanisms to limit distribution online. In particular, we find evidence that these manufacturers attempt to prevent the sale of their products by online retailers who sell goods at deep discounts. Furthermore, we show that manufacturers who distribute their goods directly through manufacturer websites tend to charge very high prices for the products, consistent with the hypothesis that manufacturers internalize free rider issues. While our main focus is on free riding, our evidence on pricing practices is germane to the growing literature on price dispersion on the internet.
主题Industrial Organization ; Firm Behavior ; Market Structure and Firm Performance
URLhttps://www.nber.org/papers/w8067
来源智库National Bureau of Economic Research (United States)
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条目标识符http://119.78.100.153/handle/2XGU8XDN/565660
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Dennis W. Carlton,Judith A. Chevalier. Free Riding and Sales Strategies for the Internet. 2001.
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