skip to content

Faculty of Economics

Journal Cover

Baye, M. R., Gatti, J. R. J., Kattuman, P. and Morgan, J.

Clicks, discontinuities, and firm demand online

Journal of Economics and Management Strategy

Vol. 18(4) pp. 935-975 (2009)

Abstract: We exploit a unique dataset from a price comparison site to estimate the determinants of clicks received by online retailers. We find that a firm enjoys a 60% jump in its clicks when it offers the lowest price at the site, and failure to account for discontinuities distorts parameter estimates by nearly 100%. This discontinuity is consistent with a variety of models that have been used to rationalize online price dispersion. Finally, we show that one may use estimates of the determinants of a firm's clicks to obtain bounds on its underlying demand parameters, including standard elasticities of demand.

Author links: Rupert Gatti  

Publisher's Link: http://onlinelibrary.wiley.com/doi/10.1111/j.1530-9134.2009.00234.x/abstract



Papers and Publications



Recent Publications


Elliott, M. and Golub, B. A network approach to public goods Journal of Political Economy [2018]

Onatski, A. and Wang, C. Alternative Asymptotics for Cointegration Tests in Large VARs Econometrica [2018]

Lee, Y-Y. and Bhattacharya, D. Applied welfare analysis for discrete choice with interval-data on income Journal of Econometrics [2019]

Erdil, A. and Kumano, T. Efficiency and stability under substitutable priorities with ties Journal of Economic Theory [2019]