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Internet Car Retailing
Article first published online: 27 MAR 2003
DOI: 10.1111/1467-6451.00160
Blackwell Publishers Ltd 2001
1467-6451/asset/cover.gif?v=1&s=65bed87f111e24e4678b79434cce3a633badeb28 "The Journal of Industrial Economics")
Additional Information
How to Cite
Morton, F. S., Zettelmeyer, F. and Silva-Risso, J. (2001), Internet Car Retailing. The Journal of Industrial Economics, 49: 501–519. doi: 10.1111/1467-6451.00160
Publication History
- Issue published online: 28 JUN 2008
- Article first published online: 27 MAR 2003
We investigate the effect of Internet car referral services on dealer pricing of automobiles in California. Customers of an online service pay on average 2% less for their car ($450 for the average car). 25% of the savings come from purchasing at low-price dealerships affiliated with the online service. The remaining 75% stem from information provision by the online service, bargaining by the service on behalf of consumers, and cost efficiencies. A consumer receiving the mean online price does better than 65% of offline consumers, conditional on the car being purchased.