Philipp Maier (DNB)
A Global Village without borders? International price differentials at eBay
One of the key advances of the internet age is the increase in transparency. Does high price transparency imply that consumer in different
countries pay the same price for similar goods? We compare prices for new, tradable goods sold via the internet auction site eBay. We find ample
evidence that prices differ between countries. This indicates that sufficient scope for price discrimination exists between countries, even in very transparent markets such as online auctions. Moreover, our results show that national borders are a key force driving international price differentials. Contrary to other studies, we do not find that having a currency of one's own drives up cross-border price differentials significantly. Lastly, differences in taxes and shipping costs are important factors in explaining price differentials.
In association with the Tinbergen Institute.
- Franc Klaassen (AE)
- Maurice Bun (KE)
- Aljaz Ule (AE/CREED)
- Florian Wagener (KE/CeNDEF)