Consumer Surplus in the Digital Economy: Estimating the Value of Increased Product Variety at Online Booksellers

Article, Preprint OPEN
Erik Brynjolfsson; Yu (Jeffrey) Hu; Michael D. Smith;
  • Journal: Management Science,volume 49,issue 11 November,pages1,580-1,596
  • Related identifiers: doi: 10.1287/mnsc.49.11.1580.20580
  • Subject: Consumer Surplus, Product Variety, Electronic Markets, | Consumer Surplus, Product Variety, Electronic Commerce, Welfare, Internet

We present a framework and empirical estimates that quantify the economic impact of increased product variety made available through electronic markets. While efficiency gains from increased competition significantly enhance consumer surplus, for instance, by leading to... View more
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