Since 2014
Fixed Costs, Product Variety, and Welfare on the Internet
Economic Analysis Review
View Archive Info| Field | Value | |
| Title |
Fixed Costs, Product Variety, and Welfare on the Internet
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| Creator |
Israilevich, Guillermo
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| Description |
The impact of product variety on welfare has received little attention in the electronic commerce literature. The problem with product variety is that more variety does not necessarily imply higher welfare. This paper finds the conditions under which more variety, if caused by lower fixed costs, implies an unambiguous welfare gain. A calibration to the market of books confirms the intuition that fixed costs –in particular, per-title fixed costs–are much lower at online stores than at conventional stores and that the welfare gains from electronic commerce are likely to be underestimated if one ignores changes in product variety.
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| Publisher |
Universidad Alberto Hurtado - Facultad de Economía y Negocios
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| Contributor |
—
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| Date |
2010-03-02
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
text/plain
application/pdf |
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| Identifier |
http://www.rae-ear.org/index.php/rae/article/view/84
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| Source |
Revista de Análisis Económico - Economic Analysis Review; Vol 23, No 2 (2008); 121-141
Revista de Análisis Económico – Economic Analysis Review; Vol 23, No 2 (2008); 121-141 0718-8870 0716-5927 |
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| Language |
eng
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| Relation |
http://www.rae-ear.org/index.php/rae/article/view/84/160
http://www.rae-ear.org/index.php/rae/article/view/84/161 |
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