You are not currently logged in.
Access JSTOR through your library or other institution:
If You Use a Screen ReaderThis content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Value of Information in an Online Consumer Electronics Market
Michael R. Baye, John Morgan and Patrick Scholten
Journal of Public Policy & Marketing
Vol. 22, No. 1, Marketing's Information Technology Revolution: Implications for Consumer Welfare and Economic Performance (Spring, 2003), pp. 17-25
Published by: American Marketing Association
Stable URL: http://www.jstor.org/stable/30000838
Page Count: 9
You can always find the topics here!Topics: Consumer prices, Information value, Prices, Market prices, Average prices, List prices, Consumer goods, Price comparisons, Average product, Statistical models
Were these topics helpful?See somethings inaccurate? Let us know!
Select the topics that are inaccurate.
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
Preview not available
Consumers who bought electronics products at the lowest prices on Shopper.com during 2000 and 2001 saved an average of 16% off the average listed price. The value of the information provided by a service such as Shopper.com depends on the size of the market, which is consistent with a variety of theories. When two firms list prices, consumers save 11% by purchasing at the lowest price rather than at the average price. These savings jump to 20% when more than 30 firms list prices. However, the potential savings accrue only to consumers on the "right" side of the digital divide.
Journal of Public Policy & Marketing © 2003 American Marketing Association